**Exxon Mobil and Chevron report significant drops in profits as they confront the ongoing impacts of trade tariffs and fluctuating oil prices, signaling potential production cutbacks in response to economic pressures.**
**Oil Giants Face Profit Decline Amid Trade Tensions**
**Oil Giants Face Profit Decline Amid Trade Tensions**
**Major U.S. oil companies navigate economic challenges and reduced profits due to tariffs and lower oil prices.**
The two largest oil corporations in the U.S., Exxon Mobil and Chevron, disclosed their lowest quarterly profits in years, reflecting the pressures inflicted by President Trump’s trade policies. These initiatives have not only dampened consumer sentiment but also triggered a decline in oil price, with U.S. crude oil seeing a dip below $60 a barrel. This is considerably lower—around $20 a barrel—than the prices before Trump assumed presidency.
Amidst these financial hurdles, the companies are also facing rising costs for essential materials such as steel, directly attributable to the tariffs enacted by the administration. Signs of slowing activity in the oil sector are emerging, with a recent report indicating a 3 percent monthly drop in the number of active rigs drilling in the Permian Basin, the leading oil-producing region in the U.S. Industry experts from Baker Hughes have observed that clients are reluctant to undertake optional expenditures, hinting towards a trend of decreased spending across the board in the year ahead.
Chevron has previously announced a reduction in its 2025 budget, maintaining a steady focus on its production and capital expenditures. “We’re comfortable with where we are right now,” stated Eimear Bonner, Chevron’s chief financial officer, emphasizing their experience in navigating market cycles.
The latest financial figures from Exxon and Chevron are reflective of market conditions prior to the announcement of further tariffs by President Trump. At the same time, OPEC Plus’s decision to expedite production plans has caught market watchers by surprise, suggesting potential upheaval in oil pricing moving forward. The ongoing trade war signals numerous challenges for major oil players as they attempt to sustain operations amid fluctuating market conditions.
Amidst these financial hurdles, the companies are also facing rising costs for essential materials such as steel, directly attributable to the tariffs enacted by the administration. Signs of slowing activity in the oil sector are emerging, with a recent report indicating a 3 percent monthly drop in the number of active rigs drilling in the Permian Basin, the leading oil-producing region in the U.S. Industry experts from Baker Hughes have observed that clients are reluctant to undertake optional expenditures, hinting towards a trend of decreased spending across the board in the year ahead.
Chevron has previously announced a reduction in its 2025 budget, maintaining a steady focus on its production and capital expenditures. “We’re comfortable with where we are right now,” stated Eimear Bonner, Chevron’s chief financial officer, emphasizing their experience in navigating market cycles.
The latest financial figures from Exxon and Chevron are reflective of market conditions prior to the announcement of further tariffs by President Trump. At the same time, OPEC Plus’s decision to expedite production plans has caught market watchers by surprise, suggesting potential upheaval in oil pricing moving forward. The ongoing trade war signals numerous challenges for major oil players as they attempt to sustain operations amid fluctuating market conditions.
