Exxon Mobil stock was tracking towards its longest string of weekly gains in nearly two decades but fell Friday even as oil prices traded higher. Concerns that the conflict between Israel and Iran was set to escalate have held oil at relatively high levels, and oil-related stocks propped the S&P 500 in Friday's early action.
The shares of the U.S. supermajor had posted consecutive weekly gains since mid-February. However, XOM shares fell Friday, running into resistance around 120 that has limited the stock's gains since February last year. This is the stock's fourth run at the technical hurdle, MarketSurge charts show.
As of Thursday's close, Exxon Mobil stock was less than 1% above its prior high of 120.70 from September, which is technically a buy point in a seven-month base. A decisive move higher could shift that level of resistance into one of support, marking a change in character for the stock.
Meanwhile, U.S. crude futures angled above $85 per barrel on Friday. Brent rebounded to $90.24 per barrel, holding just below its prior-week close by prospects of potential supply disruptions from growing tensions in the Middle East. The Wall Street Journal reported late Thursday that Israel is preparing for a direct attack from Iran on southern or northern Israel Friday or Saturday.
Geopolitical risk in the Middle East, uncertain signals of demand growth in China and rising U.S. stockpiles have had a push-pull effect on oil prices in recent weeks. But fear of open conflict between Israel and Iran have prevailed, holding U.S. prices at or above $85 a barrel.
Along with Exxon Mobil, fellow energy stocks Occidental Petroleum, Devon Energy, ConocoPhillips, Marathon Oil and APA were all running strong among S&P 500 early Friday.
Exxon Mobil Stock Performance: Earnings Coming
Even as oil prices jumped around 0.5%, Exxon Mobil stock pared early gains and fell 1.2% to 120.37 during market action Friday. On Thursday, XOM fell 0.3% to 121.79. Ahead of Friday's open, Exxon Mobil stock was up 0.35% on the week. On the year, Exxon Mobil stock has gained more than 20%.
If XOM had held its gain through Friday's close, the supermajor would have booked its ninth consecutive weekly gain, dating back to Feb. 16. That would mark its first nine-week run up since 2007, when it surged from March to June. That nine-week rally also coincided with beginning of a run up in international oil futures — to all-time highs of around $150 per barrel in July 2008.
Meanwhile, Chevron has gained around 7% in 2024. Chevron stock hit its record high of 189.68 in November 2022. Rather than repeatedly rising to retest that level, like Exxon has, Chevron has posted a series of declining highs.
The stock traded 15% below its 2022 record as of Thursday trade. CVX stock fell 2% Friday.
Exxon Mobil reports first-quarter earnings and revenue on April 26. Analysts expect Q1 EPS to fall 22% to $2.20 with sales declining nearly 10% to $78.31 billion.
Exxon Mobil reported mixed fourth-quarter earnings in February as 2023 EPS dipped 32% to $9.52 per share with revenue declining 16% to $344.58 billion. Both Exxon Mobil and Chevron saw profit and revenue declines throughout 2023, as oil and natural gas prices weakened vs. prior-year levels which were driven higher by Russia's invasion of Ukraine.
Chevron also reports Q1 earnings and revenue on April 26.
Exxon Mobil stock has a 58 Composite Rating out of a best-possible 99. XOM also has a 79 Relative Strength Rating and a 14 EPS Rating.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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