| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Oil stocks fell early Monday amid concerns that Vice President Kamala Harris could take a tougher stance on the oil and gas industry if she becomes the Democratic presidential nominee and wins the race for the White House.
As California attorney general, Harris filed lawsuits against fossil fuel companies, supported reducing greenhouse gas emissions, and pushed for a ban on fracking, according to Offshore Technology. Harris has also been critical of offshore oil exploration and defended California's Low Carbon Fuel Standard.
This potential shift in the political landscape has investors worried, with oil majors seeing declines on Monday.
At the time of publication, Chevron Corp (NYSE:CVX) was down 0.69% to $158.06, Marathon Oil Corp (NYSE:MRO) fell by 0.97% to $28.44, Exxon Mobil Corp (NYSE:XOM) decreased by 0.15% to $115.92, ConocoPhillips (NYSE:COP) slipped 1.17% to $112.99, and EOG Resources, Inc. (NYSE:EOG) saw a drop of 0.72% to $128.32.
ETFs tied to the oil sector mirrored this downward trend. The Energy Select Sector SPDR Fund ETF (NYSE:XLE) was down 0.23%, Vanguard Energy Index Fund ETF Shares (NYSE:VDE) fell by 0.19%, and the iShares U.S. Energy ETF (NYSE:IYE) declined by 0.27%.
Meanwhile, ETFs focused on renewable energy stocks were in the green, reflecting optimism about a potential shift towards clean energy under a potential Harris administration. The iShares Global Clean Energy ETF (NASDAQ:ICLN) was up 0.51%, and the GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund ETF (NASDAQ:GRID) rose by 1.11%.
The market’s reaction highlights investor concerns that Harris, known for her environmental advocacy, could enforce stricter regulations on fossil fuels and bolster support for renewable energy initiatives. As Vice President, Harris has supported various green policies, and her presidential campaign is expected to intensify the push towards renewable energy, potentially at the expense of traditional oil and gas companies.
Oil majors have reason to be cautious. If Harris runs for president and wins, her administration might focus on climate policies, including reducing carbon emissions and increasing funding for renewable energy projects. This shift could result in higher compliance costs and stricter regulatory requirements for the oil industry, potentially affecting their profitability.
The early trading slump in oil stocks underscores the market’s sensitivity to political developments, especially those that could significantly alter the energy sector’s landscape. In contrast, the positive movement in renewable energy ETFs suggests that investors are betting on a greener future under Harris’s potential leadership.
As the political climate heats up, oil majors might need to brace for a more challenging operating environment. The question on everyone’s mind: Will Harris’s potential presidency mean a seismic shift for the energy sector? Industry leaders are closely watching and preparing for any regulatory adjustments that may arise.
Read Next:
Photo: Shutterstock
