TheBadPlaceYahoo Finance | Why ExxonMobil Stock Soared More Than 11% in March
ExxonMobil (XOM) saw its stock price jump 11.3% in March, driven largely by a sharp rise in crude oil prices. Global benchmark Brent crude surged 43% to nearly $104 per barrel, its best monthly gain since May 2020, while U.S. WTI crude climbed 51% over the same period. The price spike followed U.S. and Israeli military actions against Iran, which disrupted oil flows through the Strait of Hormuz and damaged energy infrastructure, including LNG facilities in Qatar co-owned by Exxon and QatarEnergy.
Beyond higher oil prices, ExxonMobil benefited from strategic developments in March. The company expressed interest in returning to Venezuela under favorable terms, citing its improved expertise in heavy oil operations. Additionally, Exxon and QatarEnergy completed the first LNG train at their Golden Pass project in Texas, which will eventually produce 18 million tonnes per annum of LNG—timely given Iran’s disruption of Qatar’s LNG exports.
Despite the stock’s strong performance, ExxonMobil remains an attractive investment due to untapped upside. The company has underperformed relative to crude oil gains, suggesting further potential if prices stay elevated. Structural cost reductions and high-margin investments position Exxon to profit significantly in a high-price environment. While not among the Motley Fool Stock Advisor’s current top 10 picks, the stock is still considered compelling for long-term growth.
Read more: https://finance.yahoo.com/sectors/energy/articles/why-exxonmobil-stock-soared-more-210500593.html
