The article discusses how the two largest U.S. oil companies experienced their lowest profits in years due to President Trump's trade war, which has diminished consumer confidence and driven down oil prices. U.S. crude fell below $60 a barrel, complicating profitability for drilling operations. Tariffs have increased material costs. Companies like Chevron and Exxon Mobil have indicated a pullback in spending, with rig counts decreasing in key oil fields. Despite challenging conditions, Chevron's CFO remains confident in managing through market cycles.
The two largest U.S. oil companies reported their lowest first-quarter profits in years as they brace for the economic fallout from President Trump's trade war.
U.S. crude prices slipped below $60 a barrel, making it difficult for many companies to profit when drilling new wells due to rising costs from tariffs.
Chevron's CFO expressed confidence in navigating the market, stating that they've managed through cycles before and are comfortable with their current strategy.
The decline in drilling rigs in the Permian Basin and reduced spending by companies signals a retreat in the oil industry's investment strategies.
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