Exxon Mobil Shares Hit All-Time High As Oil And Gas Prices Keep Surging With No End In Sight

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Shares of energy giant Exxon Mobil hit a new all-time high on Wednesday as rising oil and gas prices continue a stellar run this year, which analysts have warned may well end 2022. Could stay.

Key Facts

Shares of Exxon Mobil rose more than 1% to a new record high on Wednesday, trading at about $105 a share, as the energy sector continues to outperform the rest of the market on rising oil and gas prices.

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Evercore ISI analyst Stephen Richardson on Tuesday upgraded Exxon to a “buy” rating with a price target of $120 per share, arguing that the stock is still trading at a discount and is expected to rise more than 60% so far. Even after that there is room to run at a higher level. year.

Oil prices continue to rise on Wednesday: US benchmark West Texas Intermediate price is around $ 120 a barrel, while international benchmark Brent crude is approaching $ 122 a barrel.

What’s more, gas prices have also risen and are now about $5 per gallon nationally, with prices averaging upwards of $5 in more than a dozen states, according to AAA data.

A host of Wall Street strategists expect oil prices to climb even higher, though: Analysts at Goldman Sachs on Tuesday raised their third-quarter forecast to $140 a barrel from $125 a barrel, while Morgan Stanley said it rising to at least $130 a barrel. At a high of $150 per barrel.

“The oil market is expected to remain tight as the supply side will continue to tell the story of low inventory,” says Edward Moya, senior market analyst at Oanda. And the holidays get hot. ,

Important Quote:

“A big jump in prices this summer is quite possible,” wrote Goldman Sachs strategists, warning that gas prices in particular could rise to levels associated with oil trading near $160 a barrel. “We believe oil prices need to rally further to normalize global oil inventories as well as continued low levels of OPEC and refining spare capacity,” the firm said.

Main background:

Oil prices hit a nearly 14-year high of $139 a barrel in March after Russia’s invasion of Ukraine pushed up global commodity prices. While oil has softened since then, it has remained above $100 a barrel in recent months – with Wall Street firms calling for a more sustained spike through the second half of 2022 as inflation continues to weigh on consumers. and leads to higher prices. Against this backdrop of increased volatility in 2022, the S&P 500 energy sector has been the market’s best-performing sector by far, rising nearly 60% this year. Other big energy giants such as Occidental Petroleum, Marathon Oil and Halliburton have also been top performers, with growth of 124%, 90% and 79%, respectively, in 2022 so far.

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The economy may be slowing down, but recession fears are ‘overblown’, argue these expertsForbes,

Gas now tops $5 per gallon in these 13 states (Forbes,

How is the market performing during an economic downturn? You might be surprised (Forbes,

Credit: www.forbes.com /

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