Occidental Petroleum (OXY) saw its stock price plummet by 5.07% in pre-market trading on Thursday, as the energy sector faced significant headwinds from falling oil prices and escalating trade tensions between China and the United States. The sharp decline comes amid a broader selloff in energy stocks, reflecting growing concerns about global oil demand and geopolitical uncertainties.

The downturn in Occidental's stock price appears to be part of a larger trend affecting major players in the energy sector. Reports indicate that other industry giants such as Exxon, Chevron, and ConocoPhillips are also experiencing notable declines in their share prices. This sector-wide slump is primarily attributed to the drop in oil prices, which has been exacerbated by the intensifying trade war between the world's two largest economies.

Despite the current market challenges, industry analysts maintain a cautiously optimistic long-term outlook for Occidental Petroleum. A recent Zacks Equity Research report highlighted OXY as one of the leading contenders in the Oil & Gas US Integrated industry, citing its significant footprint in prolific shale plays and offshore operations. The company's strong reserve replacement rate of 230% in 2024 also suggests a robust foundation for future growth. However, the immediate market reaction reflects investor concerns about short-term profitability and demand uncertainties in the face of macroeconomic headwinds.