US Election 2024: How A Trump Win Could Impact Energy Stocks

A potential victory for Republican Presidential candidate Donald Trump in the 2024 US elections is expected to have significant implications for the energy sector, according to insights from IG Bank.

If Trump secures a second term, he is likely to prioritize the increase of domestic oil and gas production, according to IG Bank. This focus could lead to a boost in stocks of major players in the oil sector, including Exxon Mobil ($XOM), Chevron ($CVX), and Baker Hughes ($BKR).

Donald Trump has signaled a major shift in U.S. energy policy through his campaign, prioritizing fossil fuels, extensive regulatory rollbacks, and a reduction in renewable energy initiatives.

He has argued that these changes are essential for lowering energy costs, achieving “energy dominance,” and enhancing the competitiveness of U.S. industries.

This includes withdrawing the United States from the Paris Agreement on climate change and easing regulations on oil and gas drilling.

While immediate gains may occur as a result of heightened production, IG Bank cautions long-term effects could include downward pressure on crude oil prices, which might temper the anticipated stock price increases.

Retail sentiment on Stocktwits around Exxon Mobil was ‘neutral’ (51/100) during mid-day trading on Wednesday ahead of the company’s earnings announcement on Friday.

In Trump's inaugural year as president, the stock only saw gains of 0.22%.

So far in 2024, it has recorded a 15% increase.

Stocktwits retail sentiment around Chevron was ‘bearish’ (39/100) during mid-day trading on Wednesday. However, chatter was ‘high’ (58/100) with the oil giant set to announce its third-quarter earnings on Friday alongside Exxon Mobil.

During the first year of Trump’s presidency, the stock rose by 11.7%.

Chevron’s stock has traded flat on a year-to-date basis.

Retail sentiment on Stocktwits around Baker Hughes was in the ‘neutral’ (49/100) territory as on Wednesday accompanied by ‘high’ (63/100) chatter.

The stock experienced a 16.61% fall during the initial year of Trump's presidency.

So far in 2024, it has recorded a 11% increase.

For updates and corrections email newsroom@stocktwits.com.

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