Occidental and Chevron Shares Decline as Iranian Officials Reach Out to U.S., According to Reports.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Barron's
- Energy Stocks Decline: Energy stocks experienced a drop early Wednesday due to market reactions to geopolitical developments.
- Iran-U.S. Communication: A report indicated that Iranian intelligence officials reached out to their American counterparts to discuss potential terms for ending ongoing conflicts.
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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: 149.820
Low
114.00
Averages
132.17
High
158.00
Current: 149.820
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.
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- Global Trade Uncertainty: New York Attorney General and 23 state prosecutors have sued to block Trump's global tariff regime, following a ruling that companies are entitled to tariff refunds, which could exacerbate market concerns over trade policies.
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- U.S. Market Pullback: All three major U.S. indexes declined, with the Dow Jones Industrial Average falling 1.61%, indicating market sensitivity to global economic slowdown, particularly affecting companies like Boeing and Caterpillar, which may lead to further downward pressure in Asia-Pacific markets.
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- Inflationary Pressures: The rise in oil prices, coupled with higher benchmark 10-year Treasury yields, creates a negative impact on the stock market, undermining investor confidence in future economic growth and potentially leading to increased market volatility.
- Trump Administration Intervention: The Trump administration is drafting a plan that may tighten control over AI chip exports; while this does not constitute an export ban, it could still affect companies like Nvidia, adding uncertainty to the industry.
- Job Data Expectations: Economic data will be in focus, with economists forecasting a 55,000 increase in non-farm payrolls for February, a 3.7% rise in average hourly earnings, and an unemployment rate steady at 4.3%, which will significantly influence market sentiment.
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- Differential Company Impact: Companies face varying levels of tariff exposure; for instance, Devon Energy is less affected by tariffs compared to ExxonMobil, which operates globally, although ExxonMobil's diversified operations help mitigate the impacts of tariffs and commodity price fluctuations.
- Midstream Stability: Midstream companies like Enterprise Products Partners can avoid commodity price risks by charging fees for transportation, and while tariffs may alter oil and gas transportation methods, demand typically remains robust even when prices are low.
- Global Energy Importance: Oil and gas are essential to the global economy, and while tariffs may have peripheral effects, they are unlikely to fundamentally alter the industry's long-term operations, as historical trends show that even during wars, oil markets tend to normalize relatively quickly.
See More
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- Tariff Policy Changes: The U.S. Supreme Court ruled some of Trump's tariffs unconstitutional, prompting him to impose a new global 15% tariff, while other tariffs remain in effect, forcing energy companies operating internationally to navigate ongoing tariff challenges.
- Market Impact: While tariffs are a factor, the energy sector's performance is primarily driven by volatile oil and gas prices, with recent geopolitical events highlighting rapid price fluctuations, indicating that tariffs may have limited long-term effects on the industry.
- Differential Company Impact: For instance, Devon Energy, as a large U.S. energy firm, faces less impact from tariffs compared to ExxonMobil, which operates globally; however, ExxonMobil's diversified operations can mitigate the effects of tariffs and price volatility, necessitating attention to potential operational impacts.
- Midstream Company Advantage: Investors might consider midstream firms like Enterprise Products Partners, which earns fees from transporting oil and gas; while tariffs could affect commodity flow, demand remains strong even when prices are low, showcasing resilience in uncertain environments.
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