Exxon Mobil: Oil Price Could Return To $115 A Barrel

Summary:

  • We argue that there’s a chance oil prices could return to $115 per barrel, which could push Exxon Mobil’s stock price to around $200.
  • Exxon Mobil’s breakeven oil price is well below the current oil price, and every dollar of oil price adds about $0.21 to its bottom line.
  • Key catalysts for higher oil prices include inflation, geopolitical tensions, production cuts by OPEC, and recovering global economies.
  • XOM is a GARP opportunity in hiding, with very reasonable P/E yet plenty of growth potential and catalysts afoot.
High Price of oil

luismmolina

Oil price vs. XOM’s breakeven oil price

The thesis of this article is quite straightforward. I will argue that A) there’s a good chance that the oil price should return to the $115 level, and B) such an oil price could push Exxon Mobil’s (


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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