How ExxonMobil’s Stock Returns Compare to Oil and Market Returns



ExxonMobil stock compared to oil and markets

ExxonMobil (XOM) stock has risen in the second quarter to date. In the current quarter, markets have surged and oil prices have risen. Markets have risen in the current quarter with an easing of tensions with China, and improved earnings have supported markets. The SPDR S&P 500 ETF (SPY), which closely follows and tracks the S&P 500 Index, has risen 7.0% in the second quarter so far.

Oil prices have risen during the second quarter, as the benchmark WTI (West Texas Intermediate) oil has risen 4.0%. This rise was led by production cuts by major oil-producing nations, geopolitical tensions, and rising global demand.

However, oil prices have softened due to the expectation of an increase in global supply from OPEC members like Saudi Arabia and non-OPEC countries like Russia. Please read Will US Crude Fall below $60? for additional information on this topic.

In April, WTI gained 9.0%, SPY gained 3.0%, and ExxonMobil (XOM) gained 6.0%. In May, WTI remained flat, SPY gained 2.0%, and ExxonMobil stock gained 6.0%.

In June so far, WTI has remained flat, SPY gained 1.0%, and ExxonMobil stock fell 1.0%. In the second quarter, WTI has increased 4.0%, SPY has gained 7.0%, and ExxonMobil stock has outperformed both WTI and SPY with 10.0% gains.

ExxonMobil in Q2 2018

In the second quarter, ExxonMobil (XOM) saw downstream growth activities. XOM has agreed to acquire PT Federal Karyatama, one of Indonesia’s largest motorcycle lubricant manufacturers. The company has formed its third joint venture with SABIC to construct a petrochemical complex in Texas.

In its Upstream segment, ExxonMobil acquired a stake in the offshore Brazil BM-S-8 block, which we discussed in Part 1 of this series. For more about ExxonMobil’s current position, please refer to ExxonMobil Focuses on Integrated Earnings Model.

ExxonMobil’s first-quarter earnings missed its estimates. For more on this topic, please refer to ExxonMobil Stock Fell 4% after 1Q18 Earnings.

Peers’ performance

BP (BP), Royal Dutch Shell (RDS.A), and Chevron (CVX) have risen 16.0%, 10.0%, and 9.0%, respectively, in the second quarter. Total (TOT), Suncor Energy (SU), and PetroChina (PTR) have risen 8.0%, 16.0%, and 21.0%, respectively, in the second quarter so far.

In the next part, we’ll evaluate XOM’s moving averages.

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