Exxon Mobil had a relatively strong day in the market on Monday. While political turmoil led to declines in oil and declines among competing companies, Exxon Mobil had good news of their own that dampened the market-wide effects of oil declines. Today, we’ll talk about the reason oil is falling, the good news Exxon Mobil released that allowed it to have a strong day in the market, and what binary options traders should be watching for ahead.
What’s Going On In Oil Today
As mentioned above, today wasn’t the best of days for oil. The reason for the declines we saw in the commodity is a relatively simple one. On Monday, Saudi Arabia, the United Arab Emirates, Egypt and Bahrain all decided to close transport links for liquefied natural gas to Qatar. The lines were cut as the result of statements made by a state-controlled news agency that they say supports extremism and undermines regional stability. Of course, this calls the OPEC production cut agreement into question. In a statement, Olivier Jakob, strategist at Petromatrix, had the following to offer…
“I think it’s still going to be a bit of a debate on the true impact it can have on the oil market… In terms of oil flows it doesn’t change very much but there is a wider geopolitical impact one needs to consider…”
That statement was followed up by ANZ bank with the following…
“Investors continue to doubt the ability of OPEC to rebalance the oil market, with crude oil prices remaining under pressure amid further signs of rising US oil production…”
Exxon Mobil Released News Of Their Own
While the oil market as a whole didn’t do too hot on Monday, Exxon Mobil didn’t play in the decline game. In fact, the company released positive news of its own, causing the stock to stay in the green throughout the day. The company announced that its wholly owned affiliate, Exploration and Production Equatorial Guinea (Deepwater) Ltd., has entered into a product sharing contract with the government of Equatorial Guinea. The agreement surrounds a deepwater block that’s located 36 miles west of Malabo. In a statement, Steve Greenlee, president of ExxonMobil Exploration Company, had the following to offer…
“We look forward to building on our more than 20-year history of safe operations in Equatorial Guinea with this new high-quality exploration opportunity… We are excited to add block EG-11 to our leading global deepwater acreage position and to expand the value of our important business in Equatorial Guinea.”
What Binary Options Traders Should Be Watching For Ahead
Moving forward, there’s no doubt in my mind that binary options traders are likely to see several opportunities ahead surrounding Exxon Mobil. As always, if you want to take advantage of these opportunities, make sure to keep a close eye on the news. In particular, pay close attention to what’s going on with the oil industry as a whole. While Monday’s good news held the stock up for the day, it may not be able to hold off industry blues for much longer. Also, pay attention to the exploration efforts in Equatorial Guinea as any updates will likely lead to movement in the stock.
What Do You Think?
Where do you think Exxon Mobil is headed moving forward? Join the discussion in the comments below!