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Follow on Google News | How is Exxon Mobil Corporation (XOM) doing right now?Inflation is out of control, with the rate of increase reaching 7.5% in January, the highest it has been in 40 years and fuel prices at a seven-year high.
It was naive back then to believe XOM's greatest days were behind it and it's probably just as naive now to believe that the present good times will last forever. Does it make the oil giant the finest oil stock to purchase today? It was evident at the time that the oil giant was a wonderful buy when it was at its lowest point. XOM being the largest oil firm in the United States, just posted fourth-quarter earnings of $8.9 billion, the highest since 2015. As global businesses shut down due to the pandemic, the pricing of a barrel of West Texas Intermediate's (WTI) oil briefly traded at negative prices for the first time ever in 2020, while Brent Crude fell to below $9 a barrel. However, by July, prices had returned to roughly $40 a barrel, where they remained for the remainder of the year, until taking off again last year. They are currently trading at well over $92 per barrel. This quarter, XOM's upstream oil and gas production divisions earned $6.1 billion in operating profit, the biggest in nearly two years. This is motivating it to increase output on its own, both in the Permian Basin in the United States and off the coast of Guyana, where it's installing a new vessel to increase capacity to over 340,000 barrels per day. By the end of 2025, XOM forecasts Guyana's capacity to reach 800,000 barrels. Oil prices will continue high as long as OPEC, or the Organization of Petroleum Exporting Countries, refuses to increase supply and instead maintains its current 400,000 barrel per day rate. OPEC's oil accounts for over 60% of all oil traded internationally. Ability Corporate Advisory Limited [https://abilitycorporateadvisory.com] is an independent Firm established in 2009 and headquartered in Hong Kong. As a boutique Firm, we are free from conflicts of interest or biased advice that can arise from misaligned incentives or commission-based structures. We offer rational investment and asset management recommendations based on a thorough understanding and analysis of your individual financial circumstances, risk profile, priorities and goals. End
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