US oil&gas rally are halted due to declining crude prices and concerns about recession

The S&P 500’s energy sector, which includes oil and gas companies, had been the best performing sector in 2021 and 2022, but has since fallen 5% since the start of the year. This is due to falling crude prices and concerns about a possible economic slowdown, which could threaten the ability of energy companies to maintain high shareholder payouts. Investors are worried about the weak “macro backdrop” and are bracing themselves for a recession. Despite this, the price of US oil settled at $71.34 a barrel on Friday, though it is still down 7% this year.