Liberty Energy Inc. (LBRT) is losing due to trade war impact and declining oil prices

From Yahoo Finance: 2025-04-09 14:40:00

The energy industry, especially oilfield services, is facing a tough time with a 25% tariff on steel and aluminum increasing costs by 4% for drilling wells. Global oil prices are at multi-year lows, impacting margins and slowing down drilling activities. The US oil industry needs prices between $61-$70 per barrel to be profitable, but ongoing trade wars have pushed prices down. Morningstar predicts a 2-3% revenue drop for oilfield services companies, translating to significant operating profit losses. Liberty Energy Inc. (LBRT) is losing this week due to these factors, ranking 4th on the list of energy stocks that have dropped the most.

LBRT, a North American oilfield services firm, is struggling due to the global trade war’s impact on costs and declining oil prices. President Trump’s tariffs have increased costs for the industry, forcing companies like LBRT to pass these on to clients and potentially slowing drilling activity. LBRT’s margins are also taking a hit due to falling oil prices. Despite the potential of energy companies, AI stocks are believed to offer higher returns in a shorter time frame. To explore promising AI stocks, check out Insider Monkey’s report on the cheapest AI stock with significant upside potential.



Read more at Yahoo Finance: Why Liberty Energy Inc. (LBRT) is Losing This Week