G-7 to Release 100M Barrels of Oil, Easing Export Ban Fears for Energy Stocks
XOM sits 49% above its 52-week low of $110.385 on light trading volume (0.3× avg).
Summary
The G-7 announced plans to release up to 100 million barrels of diesel and crude oil into the market, initially pressuring energy stocks but ultimately seen as a relief because it averts a threatened U.S. diesel export ban. ExxonMobil recovered to trade up 0.2% after falling over 1%, while Valero trimmed losses to 1% from 4%. The G-7 also reaffirmed its commitment to refrain from export restrictions among member countries, removing a major overhang for refiners. Russia's extension of its diesel export ban until end-October keeps the market undersupplied, supporting prices. The release is viewed as temporary and likely to boost future demand as stockpiles are replenished, a net positive for energy companies.
At the time of this announcement, XOM was trading at $164.04 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $674.5B. The 52-week trading range was $110.39 to $176.41. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.