Exxon Mobil (XOM) shares tumbled 5.12% in pre-market trading on Monday, as the oil giant faced pressure from declining crude prices and escalating trade tensions between the U.S. and China. The drop comes as part of a broader decline in the oil and gas sector, with investors growing increasingly concerned about global economic growth and oil demand.
Brent crude futures fell 3% to $63.57 per barrel, while U.S. West Texas Intermediate crude dropped 3.2% to $60.03 per barrel. The sharp decline in oil prices follows a 7% plunge on Friday, triggered by China's retaliatory measures against U.S. President Donald Trump's tariffs. This escalation in the trade war has heightened fears of a potential global economic slowdown, which could significantly impact oil demand.
Exxon Mobil's pre-market decline is part of a larger trend affecting major oil companies. Other industry giants, such as Chevron, ConocoPhillips, and Occidental Petroleum, are also experiencing significant drops in their stock prices. The oil sector's vulnerability to macroeconomic factors and trade disputes highlights the challenges facing energy companies in the current global economic climate.
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