Chevron Corporation (CVX) saw its stock price plummet by 5.04% in pre-market trading on Friday, as the oil giant grappled with a perfect storm of negative factors weighing on the energy sector. The sharp decline comes amid a broader selloff in oil-related stocks, triggered by tumbling crude prices and escalating global trade tensions.

The primary driver behind Chevron's stock decline appears to be the significant drop in oil prices. Brent crude futures fell by 6.8% to $65.39 per barrel, while U.S. West Texas Intermediate crude futures declined by 7.6% to $61.88 per barrel, marking their lowest levels since April 2021. This downturn in oil prices was exacerbated by China's announcement of retaliatory tariffs on U.S. goods, including a 34% duty on all imports from the United States, effective April 10. The move heightened fears of a full-blown trade war and its potential impact on global economic growth and oil demand.

Adding to the bearish sentiment was a surprise decision by OPEC+ to advance their planned output increases. The oil producer group announced it would add 411,000 barrels per day to the market in May, significantly higher than the previously planned 135,000 bpd. This unexpected supply increase, coupled with concerns about weakening demand due to trade tensions, further pressured oil prices and energy stocks like Chevron. As one of the largest integrated oil companies, Chevron's stock price is particularly sensitive to fluctuations in crude oil prices and overall market sentiment towards the energy sector.