Donald Trump attends the America First Policy Institute (AFPI) gala at Mar-A-Lago in Palm Beach, Florida, U.S., November 14, 2024. REUTERS/Carlos Barria TPX IMAGES OF THE DAY
The collective stock value of America's oil and gas firms reportedly declined by over $280 billion following the announcement of President Donald Trump's controversial tariff policy.
The Wall Street Journal reported Friday that this drop took place between April 2, the day Trump announced the tariff measures, and this Monday.
This amount exceeds the market capitalization of Chevron, the second-largest oil company in the United States. The oil industry's total market value is said to have fallen more than any other major sector.
"Among the biggest U.S. oil companies, Exxon and Chevron shares have declined 11% and 18%, respectively. Oil-field services giant Schlumberger and its top rivals, Halliburton and Baker Hughes, have fallen between 21% and 23%. Those companies are bellwethers for activity in the U.S. oil patch," noted the WSJ report, written by Benoît Morenne, Collin Eaton and Andrew Mollica.
The report further said U.S. oil prices dropped 19 percent in April to $58.21 a barrel. This is the lowest level to which the prices have been in over four years.
Several economists expect that tariffs imposed by Trump will trigger a worldwide economic slowdown, leading to decreased demand for crude oil. The Organization of the Petroleum Exporting Countries (OPEC) and its partners plan to increase their production by over 400,000 barrels daily starting in May, according to the report.
"Before Trump came into office, oil production in most U.S. crude regions was set to decline because of maturing fields and dwindling sweet spots. Oil executives expect Trump’s policies to accelerate this trend, including in the Permian Basin of West Texas and New Mexico, the largest oil field in the country," the report adds.
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