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Exxon Mobil Leads Big Oil Gains as Middle East Price Shock Lifts Outlook

Elevated crude prices strengthen the investment case for integrated oil majors.

Overview

  • Crude prices have topped $100 a barrel after conflict in the Middle East disrupted key routes such as the Strait of Hormuz, which handles a large share of global oil flows.
  • Exxon Mobil shares have surged more than 60% over the past year, beating the S&P 500 as higher oil prices boosted the company’s earnings power.
  • Citi raised its Exxon Mobil price target to $175, pointing to a broad repricing of energy stocks and renewed investor interest tied to the conflict.
  • Golden Pass LNG, the QatarEnergy–Exxon joint venture in Texas, produced its first liquefied natural gas, with Train 1 adding 6 million tons per year and Exxon holding a 30% stake.
  • Exxon forecasts higher output from the Permian and Guyana in the next few years, and its low breakeven costs and long dividend growth record support steady cash returns.