Key Takeaways

Oil and related energy stocks fell Wednesday as the price of crude dropped to its lowest level since 2021.

Shares of energy giants Chevron ( CVX ) Exxon Mobil ( XOM ), and BP ( BP ) fell between 2% and 3% soon after the opening bell, while oilfield services firms Halliburton Company ( HAL ) and Schlumberger Limited ( SLB ) and drillers APA ( APA ) and Diamondback Energy ( FANG ) also suffered losses.

Futures contracts for West Texas Intermediate, the U.S. crude oil benchmark, have tumbled about 20% since President Trump announced sweeping tariffs last week. The price was down about 3.5% to below $57.50 a barrel in recent trading after the U.S. imposed wide-ranging tariffs overnight and China retaliated .

According to Federal Reserve Bank of Dallas' most recent energy survey, oil producers require an average price of $65 a barrel to profitably drill, with nearly 60% requiring prices to be higher.

Read the original article on Investopedia