Exxon Mobil (XOM) stock broke out Friday after Russia announced it would cut its oil output by 500,000 barrels a day next month, sending crude prices higher.
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On Friday, a statement from Russia’s Deputy Prime Minister Alexander Novak said the country plans to cut March production by 500,000 barrels per day in response to the European Union’s ban on seaborne imports and price caps on oil products from Russia. Energy stocks moved higher as oil prices advanced on the news, with Exxon Mobil stock retaking a buy point.
U.S. crude futures briefly jumped around 3% to above $80 per barrel, before settling to about a 1.5% increase Friday. U.S. oil prices are now up almost 9% on the week — setting the stage for oil’s strongest advance since early October. Brent crude futures also advanced more than 2% to around $87 per barrel.
Oil prices also received a boost from China inflation data showed consumer prices rising in January, a sign that the country’s reopening economy is gaining strength. In addition, on Monday, top world oil exporter Saudi Arabia raised its crude prices for Asian markets for the first time in six months.
The International Energy Agency’s (IEA) Executive Director Fatih Birol has said China’s economy could be poised for a stronger-than-anticipated rebound that will boost demand for crude.
The IEA also produced an optimistic oil demand forecast estimating that China will boost 2023 global oil demand to record highs. Estimates from IEA forecast China’s reopening will drive global oil demand to 101.7 million barrels per day (bpd) in 2023, up by 1.9 million bpd from 2022.
Exxon Mobil Shares
Exxon Mobil stock advanced 1.8% to 116.38 during market trade Friday, moving past a 114.76 buy point. XOM shares formed a flat base with that buy point, according to MarketSmith. Exxon Mobil stock had been tracking with the S&P 500, but has now forged ahead.
Exxon Mobil posted mixed fourth-quarter financial results in late January, beating earnings estimates but missing revenue views. However, the energy giant, fueled by a “favorable market,” reported record…
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