On Wednesday, ExxonMobil stock (NYSE:XOM) rose as much as 5%. The oil major released preliminary third-quarter earnings, which boosted stock prices. Furthermore, OPEC agreed to a deeper-than-expected reduction in output, driving up oil prices.

So, What Happened to ExxonMobil Stock?

Exxon gave investors a sneak peek at its impending third-quarter report. The oil company said that before any asset impairments, it might earn $11 billion. While this is down from $17.9 billion in the second quarter, it is still much more than Exxon’s $6.8 billion in the prior year.

Oil prices fell from an average of $109 per barrel in the third quarter to $98 in the second quarter. Exxon’s profits from liquids and refining will be reduced as a result of these and other concerns. However, the corporation was largely compensated by increasing natural gas prices.

In the meanwhile, oil prices rose to their highest level in three weeks today. Brent, the global oil benchmark, rose 1.7% to $93.37 a barrel after OPEC agreed to cut supply by 2 million barrels per day. Furthermore, oil stockpile levels fell for the second week in a row, according to government data. These triggers might drive up petroleum prices in the future, allowing ExxonMobil stock (NYSE:XOM) to continue making substantial profits.

So, What Now?

Exxon anticipates good third-quarter performance as a consequence of its integrated oil and gas activities. Meanwhile, oil prices may rise as a result of OPEC’s decision to cut supply. These factors might provide Exxon with the gasoline it needs to continue surging, giving it a potentially appealing method to obtain upside exposure to the oil market.

Featured Image-  Megapixl @ Jetcityimage

Please See Disclaimer