President Donald Trump announced Thursday that the U.S. will not engage in military action against Iran before the Nov. 3 midterm elections.
Trump made the statement on Truth Social, emphasizing that discussions with Tehran are ongoing and productive.
Shares of the United States Oil Fund ETF (NYSE:USO) dropped sharply following Trump’s post.
Trump EPA Targets Methane Rule Rollback
Trump’s administration is also attempting to lower oil prices rolling back Biden-era methane rules, potentially saving oil and gas producers $45 billion annually.
The rollback targets standards for marginal wells, super-emitter leaks and gas flaring.
Publicly traded companies like ExxonMobil (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Occidental Petroleum (NYSE:OXY) could benefit from reduced compliance costs.
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Impact on Oil and Gas Sector
The U.S. Environmental Protection Agency’s (EPA) proposed changes, announced Thursday, could significantly impact the oil and gas sector, as marginal wells, which produce little fuel but emit large amounts of methane, are central to the regulatory debate.
The rollback is expected to alleviate the financial burden on producers, aligning with the administration’s focus on energy affordability and economic relief.
Technical Analysis
ExxonMobil last closed at $167.84. Its RSI(14) stands at 62.67, indicating a neutral position. XOM trades 4.04% above its 50-day SMA of $161.32 and 11.84% above its 200-day SMA of $150.07. The 50-day SMA is above the 200-day SMA.
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