Why Exxon Mobil Stock Is Slumping Today

ExxonMobil's (NYSE: XOM) shares were down about 5% by 3:00 p.m. EDT on Thursday. Weighing on the oil stock were lower oil prices and a report that it's about to make deep cuts to preserve its dividend.

Today, oil prices were under pressure with West Texas Intermediate (WTI), the main U.S. oil benchmark, closing the trading day down about 3.3%. That pushed WTI below $40 a barrel, which was the first time it breached that level in about three weeks. The main issue weighing on oil was the continued rise in COVID-19 cases, sparking fears that governments will enact new shutdowns. That would impact transportation, which accounts for about two-thirds of global oil demand.

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