Shares of many American oil producers are taking a hit today on the news that China will impose a new 5% tariff on crude oil imported from the United States, starting in September. The announcement is the latest escalation in the trade war between the two countries. China intends to place new or increased tariffs on about $75 billion in American goods including soybeans, animal proteins, vehicles, and crude oil.
The news is having the largest impact on shares of smaller, less financially stable oil producers. For example, Whiting Petroleum (NYSE: WLL) saw shares decline as much as 13.2%. The business reported a surprising loss in the second quarter and axed one-third of its employees in an effort to shore up its financial foundation.
Shares of Chesapeake Energy (NYSE: CHK) declined as much as 10.6% and shares of Oasis Petroleum (NYSE: OAS) dropped as much as 10.5%. As of 2:50 p.m. EDT, the energy stocks had mixed trajectories: Whiting Petroleum sat at daily lows while Chesapeake Energy and Oasis Petroleum each recovered some ground for the day's low points. The stocks have lost between 29% and 69% since the beginning of the year.
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Source: Motley Fool
(August 23, 2019 - 4:43 PM EDT)
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