Major Oil Companies Face Profit Declines Amid Trump's Trade Policies

As oil prices dip below $60 a barrel, U.S. oil giants Exxon and Chevron disclose some of their lowest first-quarter profits amid President Trump's trade policies. With rising costs due to tariffs and a decrease in drilling activity, concerns mount over the industry's future.

The two largest oil companies in the United States, Exxon Mobil and Chevron, have announced lower profits for the first quarter of 2025 as they confront the repercussions of President Trump's trade policies, which have weakened consumer sentiment and led to a significant drop in oil prices. U.S. crude oil prices recently fell below $60 a barrel, a critical threshold for many companies to profit from new drilling efforts. The current price is about $20 lower than what it was right before Trump's arrival in office.

Compounding the issue, oil companies are facing increased costs for materials like steel due to tariffs imposed by the administration. As a result, there is evidence that some companies are already scaling back their operations. The number of active rigs drilling in the Permian Basin, the largest oil field in the U.S., has declined by 3 percent in just the past month, according to Baker Hughes, an oilfield services company. Companies in the industry have reportedly started to cut back on discretionary spending as economic pressures mount.

Chevron, for instance, indicated months ago that it would adjust its expenditure downward for the year. Eimear Bonner, Chevron’s CFO, assured stakeholders that the company remains steady, stating that they are experienced in navigating market fluctuations and understand what actions to take.

Both Chevron and Exxon’s recent financial reports reflect a challenging market, made more complex by Trump’s recent announcements regarding additional tariffs. Meanwhile, OPEC Plus, the oil production cartel, has surprised markets by asserting it would accelerate its plans to increase oil output. This combination of factors is leading to increased scrutiny of the sustainability of production levels in the U.S. oil market moving forward.