Exxon Mobil Beats Earnings Forecasts But Crude Prices Weigh It Down

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Written By: Eno Eteng (MSTA)
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    Summary:
  • Exxon Mobil's earnings surpassed market forecasts, but the bearish market sentiment from new China tariffs is weighing down the Dow. Exxon opens lower.

Exxon Mobil’s Q2 2019 earnings per share and revenues topped the earnings forecasts by analysts. Exxon Mobile posted earnings of 73 cents per share, which was far greater than the 68 cents that was predicted by analysts. Furthermore, revenues rose to $69.091 billion, versus the consensus figure of $65.77 billion.

Earnings were boosted by a tax benefit the company received in Alberta. Revenues were boosted by upbeat performance in its upstream division, with a 90% increase in its Permian Basin oil fields. Total production in its upstream operations was up 7% to 3.9million barrels per day.

The performance of the company’s upstream operations more than made up for the underwhelming performance of the downstream and chemicals divisions of the company. Revenues from the downstream and chemicals operations fell to $451million and $188 million respectively.

Exxon Mobil Opens Lower

Crude oil prices fell 7% on Thursday and have only posted a mild recovery in Friday trading. This has affected the prices of oil company stocks, many of which are trading lower. The US markets are also lower after new trade tariffs were imposed on Chinese products. Exxon is currently testing the S1 pivot support at 70.83 (January and May 2019 lows), having broken the S1 pivot support price of 71.67.

Market sentiment is bearish. However, if support at 70.83 is able to hold, some price recovery to the 71.67 price level may occur. A downside breach of 70.83 opens the door to 69.67 in the near term.Don’t miss a beat! Follow us on Twitter.

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.

Published by
Written By: Eno Eteng (MSTA)