Why ExxonMobil Stock Jumped 5% Today

Shares of integrated energy giant ExxonMobil (NYSE: XOM) were up as much as 5% in the first half hour of trading on May 5. The gains came as early oil prices hinted that the commodity might string together five days' worth of gains. Today's oil price advance was notable, too, with U.S. benchmarks up as much as 18% and international measures up 11% or so.

Exxon is somewhat unique among the integrated oil majors today in that it has made a big commitment to drilling for new sources of energy. At the start of the year it was looking to spend as much as $33 billion, though in light of COVID-19 demand destruction, it has now lowered that figure to $23 billion. And that's still more than many of its closest peers. Fellow U.S. oil giant Chevron, for example, has dropped its 2020 spending to just $14 billion. Chevron's stock rose in early trading, too, but lagged a couple of percentage points behind Exxon.

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Source Fool.com