ExxonMobil, Chevron, and ConocoPhillips Stocks Dip After Saudi Oil Price Cut
01.09.2024 By Tank Terminals - NEWS

January 9, 2024 [Investing.com]- Shares of leading oil companies ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), and ConocoPhillips (NYSE:COP) experienced a decline following Saudi Arabia’s announcement of a $2 per barrel cut in its oil export prices.


The decision by one of the world’s largest oil exporters sent ripples through the market, resulting in a significant drop in crude oil benchmarks. West Texas Intermediate (WTI) crude fell over 4% to just under $71, while Brent crude slipped about 3.5% to approximately $76 per barrel.

The stock prices of ExxonMobil, Chevron, and ConocoPhillips reflected the impact, with ExxonMobil’s shares falling by 2.68%, Chevron’s by 1.65%, and ConocoPhillips’ by 2.84%. This downturn occurred despite recent upgrades from financial services firms Truist and Piper Sandler, which had raised their price targets for these oil majors in anticipation of stable or improving oil prices.

Despite the immediate market reaction, analysts remain optimistic about the oil sector’s prospects. Truist predicts that WTI crude will average $78 per barrel in 2024, and points to the substantial returns these companies have previously generated. Collectively, ExxonMobil, Chevron, and ConocoPhillips earned $55.5 billion, and projections suggest profits could reach around $74 billion for the year if oil prices stabilize.

Analysts are also highlighting the potential undervaluation of energy stocks given their current price-to-earnings (P/E) ratios. They advise investors to maintain their holdings through market fluctuations, signaling a belief in the resilience and long-term profitability of the energy sector despite short-term price volatility.


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