Exxon Mobil Corporation (NYSE: XOM) shares have advanced more than 30% since the beginning of January 2022, and the current share price stands at $85.
Goldman Sachs increased its oil price forecast for 2022
Exxon Mobil shares continue to perform well as the rise in oil prices keeps investors in a positive mood.
The U.S. Energy Information Administration (EIA) reported that crude oil production would reach record levels in 2023, and according to EIA, crude oil prices will remain high enough to spur growth in crude oil production through 2023.
Damien Courvalin, an analyst from Goldman Sachs, increased its base-case 2022 oil price forecast to $135 from $98. Exxon Mobil CEO Darren Woods said that higher oil prices would be likely to benefit producers like Exxon, Chevron, Shell, BP, and others. Damien Courvalin said:
Given Russia’s key role in global energy supply, the global economy could soon be faced with one of the largest energy supply shocks ever.
The Russia-Ukraine conflict also poses a risk to economic growth and inflation, but the future performance of oil prices is likely to depend on OPEC decisions.
Exxon Mobil suspended its operation in Russia and announced it would not invest in new developments in the country in response to Russia’s invasion of Ukraine.
CFO Kathryn Mikells said that Exxon Mobil’s decision to exit from Russia would impact company earnings and oil production by less than 2%.
Pioneer Natural Resources CEO Scott Sheffield said this month that the U.S. could double its rate of oil production over the next 18 months, but much of this depends on dialogue with the Biden administration.
Exxon Mobil also requested a more supportive energy policy and reported that a more accommodative policy needs to start now.
Wells Fargo analyst Roger Read sees another year of outperformance for the oil and gas companies, and Exxon Mobil remains one of the top picks. Exxon Mobil’s 4.13% dividend looks safe, while CEO Darren Woods said that Exxon could pay dividends even with $50/bbl.
The company’s management remains very optimistic about the upcoming quarters in terms of growth, Exxon Mobil trades at less than eight times TTM EBITDA, and with a market capitalization of $353 billion, shares of this company are fairly valued.
The positive trend remains intact
Exxon Mobil shares have advanced more than 30% since the beginning of the 2022 year, and according to technical analysis, the positive trend remains intact. If the price jumps above $90, the next price target could be at $95 or even $100.
The current support level stands at $80, and if the price falls below this level, it would be a “sell” signal, and we have the open way to the $70.
Summary
Exxon Mobil shares have been advancing last several months, and according to technical analysis, the positive trend remains intact. CFO Kathryn Mikells said that Exxon Mobil’s decision to exit from Russia would impact company earnings and oil production by less than 2%.
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from Market Analysis – Invezz
