Trump's tariffs hit shale oil companies, raising concerns that energy production targets may be missed.

Shale oil companies have suffered some heavier blows on Wall Street as crude oil prices have plummeted and Trump’s trade war runs counter to his goal of increasing U.S. energy production. The S&P 500 energy index has fallen more than 15% since Trump announced sweeping tariffs, while the S&P Oilfield Services index, which includes hydraulic fracturing and deepwater drilling companies, posted its biggest drop since mid-2020, at the height of the pandemic. According to a recent survey by the Dallas Fed, U.S. crude oil futures prices have now fallen below $62 — below the $65 threshold that many companies need to make a profit by drilling new wells. At the same time, Trump’s tariffs have pushed up the price of drilling rigs, with the cost of steel pipes rising by about 30% compared to pre-tariff levels. Leo Mariani, an analyst at Roth Capital Partners, said: "The ‘drill, baby, drill’ spectacle didn’t really emerge before oil prices plummeted in the last few days. “Now, at lower prices, you’re going to get the opposite.”