Occidental Petroleum (OXY) saw its stock price plummet 6.24% in pre-market trading on Thursday, as a perfect storm of negative factors hit the oil sector. The company's shares were caught in a broader downturn affecting oil companies, driven by trade war fears, increased OPEC+ output, and a sharp decline in crude oil prices.

The sell-off was primarily triggered by U.S. President Donald Trump's announcement of sweeping new tariffs, which investors fear could ignite a global trade war and potentially reduce fuel demand. While oil, gas, and refined products were exempted from the new 10% minimum tariff on most imported goods, the broader economic implications have rattled energy markets. Ashley Kelty, an analyst at Panmure Liberum, warned, "This threatens to drive up inflation and stall worldwide economic growth, with a consequent drop in demand for oil."

Adding to the pressure, OPEC+ announced an acceleration of its planned output hikes, with eight member countries set to increase production by 411,000 barrels per day in May. This unexpected move further exacerbated the decline in oil prices, with Brent crude futures falling 5.9% to $70.52 per barrel and U.S. West Texas Intermediate crude futures dropping 6.2% to $67.25 per barrel. The sharp rise in U.S. crude oil stockpiles also contributed to the bearish sentiment in the oil market. As a result, major oil companies across the board experienced significant pre-market declines, with Occidental Petroleum among the hardest hit.