Occidental Petroleum (OXY) saw its stock price plummet 5.09% in pre-market trading on Thursday, as investors reacted to President Trump's announcement of sweeping new tariffs that have sparked fears of a global trade war and potential reduction in fuel demand.

The decline in Occidental's stock price comes as part of a broader downturn in the oil sector. Brent crude futures were down 3% at $72.71 per barrel, while U.S. West Texas Intermediate crude futures declined 3.15% to $69.45 per barrel. The sharp drop in oil prices was further exacerbated by a significant rise in U.S. crude oil stockpiles.

While the import of oil, gas, and refined products were exempted from the new 10% minimum tariff on most goods imported to the United States, the broader economic implications have still rattled the energy sector. Ashley Kelty, an analyst at Panmure Liberum, commented, "This threatens to drive up inflation and stall worldwide economic growth, with a consequent drop in demand for oil." The uncertainty surrounding the situation has led to increased volatility in the market, with other major oil companies such as Exxon Mobil and Chevron also experiencing significant pre-market declines.