In brief
U.S. oil giants Exxon and Chevron are struggling with profitability as President Trump's tariffs hurt market confidence and lower crude prices.
Exxon Mobil and Chevron, the two largest oil companies in the U.S., revealed their lowest earnings in years for the first quarter of 2025, largely due to the economic effects of President Trump’s trade policies. Oil prices fell below $60 a barrel, making it difficult for producers to generate profits, especially as they face rising costs for steel and materials linked to tariffs. The situation is causing companies to reconsider their spending and production strategies.According to Baker Hughes, the number of active drilling rigs in the prominent Permian Basin has dropped by 3% over the past month, indicating companies are delaying investments. Chevron has signaled a reduction in 2025 spending plans, while Exxon’s financial results showed the impact of a market shaken by new tariffs. This may lead to a broadened downturn in the oil sector as consumer confidence continues to wane.
