For the first time since June 23, 2014, shares of Exxon climbed above $100 apiece on Tuesday. Buoyed by sky-high oil prices, the stock has jumped nearly 70% year-to-date, while the S&P 500 has lost almost 13%.
According to CNN, In 2020, the stock was kicked out of the Dow Jones Industrial Average after 92 years in the exclusive index. Then, as the pandemic recovery strained limited global oil supplies, energy prices skyrocketed. The decision by Western countries to shun Russian crude has made the market even tighter. That’s been a huge boon for companies like Exxon, whose profit doubled last quarter to $5.5 billion.
“Exxon and other global majors are enjoying a rare moment in time where all key businesses have highly constructive supply and demand fundamentals,” JPMorgan strategists said. Oil prices could keep marching higher, to Exxon’s benefit. Goldman Sachs said this week that it now expects global prices to average $140 a barrel between July and September, up from its prior forecast of $125 a barrel.
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