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An oil pumpjack is seen in a field in Gillett, Texas.
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Shares of energy companies, oil drillers, and oilfield services providers all fell early Wednesday.
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The price of crude oil dropped to its lowest level since 2021 and is down roughly 20% since President Trump announced tariffs last week.
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Crude prices fell below $58 a barrel, while a recent survey found producers require an average price of at least $65 to profitably drill.
Oil and related energy stocks fell Wednesday as the price of crude dropped to its lowest level since 2021.
Shares of energy giants Chevron (CVX) Exxon Mobil (XOM), and BP (BP) fell between 2% and 3% soon after the opening bell, while oilfield services firms Halliburton Company (HAL) and Schlumberger Limited (SLB) and drillers APA (APA) and Diamondback Energy (FANG) also suffered losses.
Futures contracts for West Texas Intermediate, the U.S. crude oil benchmark, have tumbled about 20% since President Trump announced sweeping tariffs last week. The price was down about 3.5% to below $57.50 a barrel in recent trading after the U.S. imposed wide-ranging tariffs overnight and China retaliated.
According to Federal Reserve Bank of Dallas’ most recent energy survey, oil producers require an average price of $65 a barrel to profitably drill, with nearly 60% requiring prices to be higher.
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