Occidental Petroleum (OXY) saw its stock price plummet 7.86% in pre-market trading on Friday, as the oil sector faced significant pressure from tumbling crude oil prices. The sharp decline in oil prices was triggered by a perfect storm of negative factors, including escalating trade tensions between the U.S. and China, increased output plans from OPEC+, and growing concerns about global economic slowdown.

The oil market was rattled by U.S. President Donald Trump's announcement of new tariffs, which was met with retaliatory measures from China. China declared it would impose additional tariffs of 34% on all U.S. goods starting April 10, intensifying fears of a global trade war. This development sent shockwaves through financial markets, raising concerns about potential economic slowdown and reduced oil demand. Brent crude futures plunged by 5% to $66.66 a barrel, while U.S. West Texas Intermediate crude futures dived by 5.3% to $63.40, both heading towards their lowest levels since the depths of the coronavirus pandemic in 2021.

Adding to the bearish sentiment, OPEC+ announced plans to increase oil output more aggressively than previously expected. The producer group now aims to return 411,000 barrels per day to the market in May, up from the initially planned 135,000 bpd. This decision, coupled with the trade war concerns, has led to a significant sell-off in oil futures. As a major oil producer, Occidental's stock price is particularly vulnerable to such sharp declines in oil prices, explaining its pre-market plunge. The company's stock performance reflects the broader challenges facing the energy sector amidst global economic uncertainties and shifting supply dynamics.