Exxon Mobil Corporation (XOM) Stock Breaks to Fresh Highs on Oil Freeze

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Energy sector giant Exxon Mobil Corporation (NYSE:XOM) is surging to levels not seen since late July thanks to an over-the-weekend agreement by OPEC and non-OPEC countries (mainly, Russia) to cap oil output in an effort to support crude prices. The news has XOM stock breaking out of a six-month trading range and pointed toward July highs near $95.

Officials agreed that non-OPEC producers including Russia and Mexico would cut output by 558,000 barrels per day, adding to the 1.2 million-barrel-per-day OPEC production cut agreed to earlier in the month. An executive director at the International Energy Agency said the move could raise oil prices to $60 a barrel or more.

Exxon Mobil (XOM) stock chart view 1

Russia energy minister said the agreement shows that OPEC and non-OPEC countries are in for long-term coordination of supply, speeding up oil market stabilization and reducing price volatility.

Finally, Saudi officials hinted over the weekend that they could be willing to cut production below the psychologically significant 10-million-barrels-per-day level depending on market conditions — suggestive that Riyadh is looking to push oil to $70.

All of this is great news for XOM stock, which has been in the news surrounding chatter that its CEO, Rex Tillerson could become president-elect Donald Trump’s pick for Secretary of State.

It also has been great news for Edge Pro subscribers enjoying a 152% gain in their December $88 XOM calls and a 130% gain in their $87.50 calls.

Exxon Mobil needed something. Third-quarter earnings reported back in late October were less than encouraging. Profits were off 38% year-over-year to 63 cents per share, while revenues declined 13% to $58.7 billion — the latter representing an awfully big disappointment to analysts, who were calling for $63.85 in revs.

The company will next report results on Jan. 31 before the bell. Analysts are looking for earnings of 77 cents per share on revenues of $66.8 billion.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2016/12/exxon-mobil-corporation-xom-stock-fresh-highs/.

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