XOM stock is trending as oil shoots higher. See the real-time price action here.
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Read Also: SpaceX Stock Faces a Risk That Keeps Coming Back in Waves Friday’s attacks, which Riyadh blamed on Iranian-backed fighters in Iraq, closed the East-West pipeline — the route allowing oil exports to bypass the blockaded Strait of Hormuz. “Oil traders are treating every fresh attack or infrastructure hit as an incremental supply risk, while staying highly sensitive to any sign that the East-West pipeline or Hormuz flows could normalize,” said Tim Waterer, chief market analyst at KCM Trade, Reuters reported.
Saudi Arabia could exhaust oil available for export within days unless it restores the pipeline, potentially removing as much as 4% of global supplies from the market, according to Saudi buyers and traders cited by Reuters. See More: Top Value Stocks Trading The Disruption With crude holding a bid, oil majors Exxon Mobil Corp.
(NYSE:XOM), Chevron Corp. Refiners face a tougher setup, since higher feedstock costs can compress margins even as retail prices climb.
Risk cuts both ways. “Plenty of uncertainty remains over the extent of damage and duration of the outage for the East-West pipeline in Saudi Arabia.
Any confirmation that flows have resumed could quickly unwind gains.
