Oil and energy stocks are getting crushed by coronavirus fears

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Oil and energy stocks are getting crushed by coronavirus fears
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The coronavirus outbreak is the biggest shock to demand for oil since the 2008 financial crisis. Economists are warning that the outbreak could spark a severe economic slowdown or even recession in the United States and elsewhere.

Oil prices plunged deeper into a bear market Wednesday, reflecting fears about the economic repercussions of the rapidly-spreading health crisis. Economists are warning the coronavirus could spark a severe economic slowdown or even recession in the United States and elsewhere.The outbreak is the biggest shock to demand for oil since the 2008 financial crisis.US crude dropped another 2.3% on Wednesday to $48.73 a barrel.

How the coronavirus could spark a severe slowdown or recession in AmericaThe oil patch suffered more selling Wednesday, even as the broader markets staged a fragile rebound. Devon Energy and Diamondback Energy fell more than 5% apiece, making them among the biggest losers on the S&P 500. Larger rivals ExxonMobil and Chevron also retreated.Unlike recent oil bear markets caused by excess supply, this one is all about weakening demand.

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