Why ExxonMobil Stock Is Slipping Today
Shares of ExxonMobil (NYSE: XOM) were falling this morning and were down 3.1% as of 11:50 a.m. ET Tuesday, wiping out all of their gains and some from the previous day. Although the oil and gas stock typically mirrors movements in crude oil prices, there's another reason why ExxonMobil was falling today.
Crude oil prices tumbled Tuesday morning after OPEC cut its global oil demand forecast for 2024 to about 2 million barrels per day (BPD), or roughly 80,000 BPD lower than its previous forecast. OPEC also revised its forecast for oil demand for 2025. Brent crude, the global oil price benchmark, slumped more than 3% this morning and slipped below the $70 mark to a low it hasn't seen in more than a year. As one of the world's largest oil producers, ExxonMobil's earnings and cash flows are bound to be hit when oil prices dip.
Meanwhile, ExxonMobil has reportedly pulled out of a race to buy a stake in a promising oil discovery in Namibia, according to Reuters. ExxonMobil is among the several global oil and gas giants eyeing a piece of Galp Energia's asset. Galp owns an 80% stake in an oil block in the Orange Basin, a region where several oil large discoveries have been reported in recent years.
Source Fool.com
