Market Insider

Oil slides, dragging down energy stocks

A floor crew pull steel pipe out of a natural gas well in the Barnett Shale of Fort Worth, Texas that is owned by Chesapeake Energy Corporation.
Robert Nickelsberg | Getty Images

U.S. crude closed down about 5 percent to $46.60 a barrel Tuesday, weighing on energy stocks.

The S&P 500's energy sector overall down about 2 percent, with shares of Chesapeake Energy — down about 6 percent — and Southwestern Energy — down 10 percent — among others, leading the way lower.

Financial stress in the U.K. after the country's vote to leave the EU last month, and data from China expected in coming weeks to show weakened trade and investment contributed to nervousness over a global slowdown in growth.

"The deterioration in the global economic outlook, financial market uncertainty and ripple effects on key areas of oil demand growth are likely to exacerbate already-lackluster industrial demand growth trends," British bank Barclays said in a report.

Although WTI is down Tuesday, it is still significantly up compared to its multi-year low levels reached in February.

U.S. crude in 2016

— Reuters contributed reporting