Why Oil and Gas Stocks Dropped on Monday

The value of oil and gas stocks dropped on Monday as investors prepare for a Federal Reserve meeting on Wednesday. Hopes from a few weeks ago that short-term interest rates may only rise 50 basis points are almost gone and some analysts are expecting a full 100-basis-point increase, which would be the biggest increase in rates in 40 years. Notable moves came from Occidental Petroleum (NYSE: OXY), which fell as much as 3.3% in morning trading; ExxonMobil (NYSE: XOM), which was down as much as 2.4%; Diamondback Energy (NASDAQ: FANG), which fell 3.6%; and offshore rig owner Transocean (NYSE: RIG), which dropped as much as 4.3%.