Crude Oil Prices Plummet, Energy Stocks Remain Optimistic
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 57 minutes ago
0mins
Source: Fool
- Crude Price Drop: In June, WTI crude oil prices fell by 20% to $69.50 per barrel, while Brent crude dropped nearly 25% to just below $73, indicating a reduction in market concerns over supply shortages.
- Supply Chain Responses: Saudi Arabia and the UAE increased pipeline volumes to bypass the Strait of Hormuz, while China reduced imports and the IEA coordinated emergency oil releases, alleviating the crude oil supply crisis.
- Profitability Enhancements: ExxonMobil has achieved $15.6 billion in structural cost savings since 2019, expecting to reach $20 billion by 2030, with plans to generate $25 billion in earnings growth at stable pricing and margins by 2024.
- Investment Opportunities at Low Prices: Despite falling crude prices, both ExxonMobil and ConocoPhillips anticipate significant growth in the coming years, highlighting the long-term investment appeal of these energy stocks in a low-price environment.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 136.720
Low
114.00
Averages
132.17
High
158.00
Current: 136.720
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Iraq Seeks Higher OPEC Quota Amid Economic Crisis
- Economic Pressures Intensify: Iraq's aggressive push for a higher OPEC quota is driven by the economic fallout from the Iran war, which has severely disrupted exports and highlighted the country's reliance on oil for 88% of government revenues, underscoring the urgency for economic recovery.
- Investment Rebound Signals: Major oil companies like BP, TotalEnergies, and ExxonMobil have signed multi-billion-dollar development deals since early 2025, indicating a renewed confidence in Iraq's market despite significant infrastructure and execution risks that could hinder progress.
- Ambitious Production Targets: Iraq aims to increase oil production to 7 million barrels per day in the coming years, although experts express skepticism about overcoming infrastructure bottlenecks, which could have profound implications for the nation's economy if achieved.
- Policy Support and Challenges: Newly appointed Prime Minister Ali Faleh al-Zaidi emphasizes the importance of attracting foreign investment and plans to collaborate with the U.S., yet historical concerns about the investment climate may still pose challenges for future investment decisions.
See More
Crude Oil Prices Plummet, Energy Stocks Remain Optimistic
- Crude Price Drop: In June, WTI crude oil prices fell by 20% to $69.50 per barrel, while Brent crude dropped nearly 25% to just below $73, indicating a reduction in market concerns over supply shortages.
- Supply Chain Responses: Saudi Arabia and the UAE increased pipeline volumes to bypass the Strait of Hormuz, while China reduced imports and the IEA coordinated emergency oil releases, alleviating the crude oil supply crisis.
- Profitability Enhancements: ExxonMobil has achieved $15.6 billion in structural cost savings since 2019, expecting to reach $20 billion by 2030, with plans to generate $25 billion in earnings growth at stable pricing and margins by 2024.
- Investment Opportunities at Low Prices: Despite falling crude prices, both ExxonMobil and ConocoPhillips anticipate significant growth in the coming years, highlighting the long-term investment appeal of these energy stocks in a low-price environment.
See More
Oil Prices Plunge 20%, Impacting Producers' Profitability
- Oil Price Drop: In June, WTI crude oil prices fell by 20% to $69.50 per barrel, while Brent crude saw a nearly 25% decline, reflecting market optimism about supply issues despite the negative impact on producer profitability.
- Producers' Strategies: ExxonMobil and ConocoPhillips expect to achieve significant growth even at lower oil prices in the coming years, with Exxon targeting $25 billion in earnings growth and $35 billion in cash flow growth by 2030, demonstrating resilience in a low-price environment.
- Cost Control Measures: ExxonMobil has achieved $15.6 billion in structural cost savings since 2019, aiming for $20 billion by 2030, while ConocoPhillips has lowered its breakeven point to the mid-$40s, showcasing its ability to thrive under lower price conditions.
- Optimistic Market Outlook: The signing of a Memorandum of Understanding between the U.S. and Iran to reopen the Strait of Hormuz has led analysts to lower oil price forecasts, indicating that while prices may drop in the short term, long-term investment opportunities remain viable.
See More
Financial Comparison of ExxonMobil and Chevron
- Revenue Scale Comparison: ExxonMobil reported $90 billion in revenue for Q2 2024, significantly surpassing Chevron's $49.6 billion, highlighting its market dominance in the oil and gas sector, with quarterly revenues typically exceeding Chevron's by over 70%.
- Production Capacity Increase: ExxonMobil achieved a record daily production of 4.7 million barrels of oil equivalent in 2025, a 40-year high, while Chevron's net production was 3.7 million BOE, indicating that despite close upstream revenues, ExxonMobil's downstream refining capabilities are superior.
- Impact of Major Acquisitions: ExxonMobil's $60 billion acquisition of Pioneer Natural Resources significantly boosted its production capacity in the Permian Basin, while Chevron's $53 billion acquisition of Hess in 2025 expanded its footprint in Guyana and Bakken, demonstrating both companies' aggressive growth strategies.
- Profitability Analysis: Despite the significant revenue differences, both ExxonMobil and Chevron posted operating margins around 10%, indicating that a larger revenue base does not necessarily translate into higher profits, prompting investors to consider their long-term investment potential.
See More
Promising Outlook for Energy Sector Amidst Stable Oil Prices
- Oil Price Support: The price of West Texas Intermediate (WTI) crude is stable around $70 per barrel, significantly above the shut-in prices of key resources in the U.S., thereby providing a favorable environment for integrated energy companies' exploration and production operations, enhancing their profitability.
- Strong Midstream Demand: With favorable upstream activity outlook, oil and gas production is expected to remain satisfactory, which will boost demand for pipeline and storage assets, ensuring stable fee-based revenues for midstream businesses amidst commodity price volatility.
- Diversification Trend: International integrated energy companies are gradually investing in renewable energy, and by diversifying operations, they can capitalize on the mounting demand for cleaner energy, thereby enhancing their market competitiveness and sustainability.
- Improved Industry Ranking: The Zacks Oil and Gas Integrated International industry holds a Zacks Industry Rank of 99, placing it in the top 40% of over 250 industries, indicating a promising short-term outlook that attracts investor attention.
See More
Strong Stock Performance in H1 2026 Highlights Key Trends
- Small-Cap Outperformance: The Russell 2000 index surged nearly 22% in the first half of 2026, making it the top performer among major indices, indicating a strong rebound in small-cap stocks that has captured investor interest.
- Tech Sector Leadership: The Nasdaq 100 rose almost 20%, while the Nasdaq Composite gained nearly 13%, reflecting sustained growth in the tech sector and investor confidence in innovative companies, which may drive future investment inflows.
- Analyst Stock Picks: Morgan Stanley's recommendation of Applied Materials saw its stock rise 180% in 2026, while Bank of America's pick of Lam Research increased by 153%, showcasing strong analyst confidence that could influence investor decisions.
- Fuel Price Challenges: The national average gasoline price in the U.S. stands at $3.8470 per gallon, with President Trump aiming to reduce it to $2.50, although facing numerous challenges, this goal could impact energy stocks' performance and market expectations.
See More
Iraq Seeks Higher OPEC Quota Amid Economic Crisis
- Economic Pressures Intensify: Iraq's aggressive push for a higher OPEC quota is driven by the economic fallout from the Iran war, which has severely disrupted exports and highlighted the country's reliance on oil for 88% of government revenues, underscoring the urgency for economic recovery.
- Investment Rebound Signals: Major oil companies like BP, TotalEnergies, and ExxonMobil have signed multi-billion-dollar development deals since early 2025, indicating a renewed confidence in Iraq's market despite significant infrastructure and execution risks that could hinder progress.
- Ambitious Production Targets: Iraq aims to increase oil production to 7 million barrels per day in the coming years, although experts express skepticism about overcoming infrastructure bottlenecks, which could have profound implications for the nation's economy if achieved.
- Policy Support and Challenges: Newly appointed Prime Minister Ali Faleh al-Zaidi emphasizes the importance of attracting foreign investment and plans to collaborate with the U.S., yet historical concerns about the investment climate may still pose challenges for future investment decisions.
See More
Crude Oil Prices Plummet, Energy Stocks Remain Optimistic
- Crude Price Drop: In June, WTI crude oil prices fell by 20% to $69.50 per barrel, while Brent crude dropped nearly 25% to just below $73, indicating a reduction in market concerns over supply shortages.
- Supply Chain Responses: Saudi Arabia and the UAE increased pipeline volumes to bypass the Strait of Hormuz, while China reduced imports and the IEA coordinated emergency oil releases, alleviating the crude oil supply crisis.
- Profitability Enhancements: ExxonMobil has achieved $15.6 billion in structural cost savings since 2019, expecting to reach $20 billion by 2030, with plans to generate $25 billion in earnings growth at stable pricing and margins by 2024.
- Investment Opportunities at Low Prices: Despite falling crude prices, both ExxonMobil and ConocoPhillips anticipate significant growth in the coming years, highlighting the long-term investment appeal of these energy stocks in a low-price environment.
See More
Oil Prices Plunge 20%, Impacting Producers' Profitability
- Oil Price Drop: In June, WTI crude oil prices fell by 20% to $69.50 per barrel, while Brent crude saw a nearly 25% decline, reflecting market optimism about supply issues despite the negative impact on producer profitability.
- Producers' Strategies: ExxonMobil and ConocoPhillips expect to achieve significant growth even at lower oil prices in the coming years, with Exxon targeting $25 billion in earnings growth and $35 billion in cash flow growth by 2030, demonstrating resilience in a low-price environment.
- Cost Control Measures: ExxonMobil has achieved $15.6 billion in structural cost savings since 2019, aiming for $20 billion by 2030, while ConocoPhillips has lowered its breakeven point to the mid-$40s, showcasing its ability to thrive under lower price conditions.
- Optimistic Market Outlook: The signing of a Memorandum of Understanding between the U.S. and Iran to reopen the Strait of Hormuz has led analysts to lower oil price forecasts, indicating that while prices may drop in the short term, long-term investment opportunities remain viable.
See More
Financial Comparison of ExxonMobil and Chevron
- Revenue Scale Comparison: ExxonMobil reported $90 billion in revenue for Q2 2024, significantly surpassing Chevron's $49.6 billion, highlighting its market dominance in the oil and gas sector, with quarterly revenues typically exceeding Chevron's by over 70%.
- Production Capacity Increase: ExxonMobil achieved a record daily production of 4.7 million barrels of oil equivalent in 2025, a 40-year high, while Chevron's net production was 3.7 million BOE, indicating that despite close upstream revenues, ExxonMobil's downstream refining capabilities are superior.
- Impact of Major Acquisitions: ExxonMobil's $60 billion acquisition of Pioneer Natural Resources significantly boosted its production capacity in the Permian Basin, while Chevron's $53 billion acquisition of Hess in 2025 expanded its footprint in Guyana and Bakken, demonstrating both companies' aggressive growth strategies.
- Profitability Analysis: Despite the significant revenue differences, both ExxonMobil and Chevron posted operating margins around 10%, indicating that a larger revenue base does not necessarily translate into higher profits, prompting investors to consider their long-term investment potential.
See More
Promising Outlook for Energy Sector Amidst Stable Oil Prices
- Oil Price Support: The price of West Texas Intermediate (WTI) crude is stable around $70 per barrel, significantly above the shut-in prices of key resources in the U.S., thereby providing a favorable environment for integrated energy companies' exploration and production operations, enhancing their profitability.
- Strong Midstream Demand: With favorable upstream activity outlook, oil and gas production is expected to remain satisfactory, which will boost demand for pipeline and storage assets, ensuring stable fee-based revenues for midstream businesses amidst commodity price volatility.
- Diversification Trend: International integrated energy companies are gradually investing in renewable energy, and by diversifying operations, they can capitalize on the mounting demand for cleaner energy, thereby enhancing their market competitiveness and sustainability.
- Improved Industry Ranking: The Zacks Oil and Gas Integrated International industry holds a Zacks Industry Rank of 99, placing it in the top 40% of over 250 industries, indicating a promising short-term outlook that attracts investor attention.
See More
Strong Stock Performance in H1 2026 Highlights Key Trends
- Small-Cap Outperformance: The Russell 2000 index surged nearly 22% in the first half of 2026, making it the top performer among major indices, indicating a strong rebound in small-cap stocks that has captured investor interest.
- Tech Sector Leadership: The Nasdaq 100 rose almost 20%, while the Nasdaq Composite gained nearly 13%, reflecting sustained growth in the tech sector and investor confidence in innovative companies, which may drive future investment inflows.
- Analyst Stock Picks: Morgan Stanley's recommendation of Applied Materials saw its stock rise 180% in 2026, while Bank of America's pick of Lam Research increased by 153%, showcasing strong analyst confidence that could influence investor decisions.
- Fuel Price Challenges: The national average gasoline price in the U.S. stands at $3.8470 per gallon, with President Trump aiming to reduce it to $2.50, although facing numerous challenges, this goal could impact energy stocks' performance and market expectations.
See More
