Why is ExxonMobil Stock Rising Today?

ExxonMobil Stock NYSE:XOM

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.

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About the author: Okoro Chinedu is a freelance writer specializing in health and finance, with a keen interest in cryptocurrency and blockchain technology. He has worked in content creation and digital journalism. Since 2019, he has written on various online platforms, and his work has been recognized by several important media sources and specialists in finance and crypto. In addition to writing, Chinedu enjoys reading, playing football, posing as a medical student, and traveling.