Exxon Mobil (XOM) shares plummeted 5.12% in pre-market trading on Monday, as the oil giant faced pressure from declining crude oil prices and escalating global trade tensions. The sharp drop comes as part of a broader selloff in the energy sector, with investors growing increasingly concerned about the potential impact of a global economic slowdown on oil demand.

The decline in Exxon's stock price is primarily attributed to the significant drop in oil prices. Brent crude futures fell 3% to $63.57 per barrel, while U.S. West Texas Intermediate crude decreased 3.2% to $60.03 per barrel. This downturn in oil prices follows a 7% plunge on Friday, triggered by China's retaliatory measures against U.S. President Donald Trump's tariffs, further intensifying the ongoing trade war between the world's two largest economies.

Exxon Mobil is not alone in its struggles, as other major oil companies are also experiencing significant pre-market declines. Chevron, another U.S. oil major, saw its stock drop 3.66%. The widespread impact on the energy sector is evident, with Europe's index of oil companies plummeting 6.38%. As trade tensions continue to fuel recession fears, investors appear to be reevaluating their positions in oil stocks, anticipating potential weakening in global oil demand.