Analysts at energy consulting firm Rystad Energy say the recent plunge in US oil prices — benchmark West Texas Intermediate has dropped about 15% to roughly $60 a barrel over the last three sessions — could prompt oil producers in the oil- and gas-rich Permian Basin of West Texas to cut production.

While sharp sell-offs in trade-exposed parts of the market, such as technology stocks like AppleAAPL $196.95 (3.99%) and retail-related stocks like NikeNKE $54.35 (-0.04%) and TargetTGT $92.74 (0.10%), have received a lot of attention since the Rose Garden rout began, it’s actually energy stocks that have been the worst performing of the S&P 500’s 11 “sector” breakdowns.

In fact, the single worst-performing S&P 500 stock of the last few days has been APA CorporationAPA $15.07 (2.74%), a Texas-based shale driller active in the Permian Basin. It’s down nearly 30% since the April 2 announcement.

The industry’s woes would be a somewhat surprising result for the oil and gas companies and executives that were heavy donors to the Trump reelection campaign. The president ran, in part, on a promise of boosting US production and ensure “energy dominance” of the American industry. On the other hand, he also promised to deeply cut the energy costs American consumers pay, and the recessionary pricing of oil means he’s made some progress there.

By: Matt Phillips, Sherwood / 4/7/25.