XOM @ 83 headed for 70s

[Top Oil Trader + 469]

Chart speaks for itself. No explanation needed. But fundamentally speaking, if oil prices go down, profits will head down, 

[Top Oil Trader + 469]

Here is the news that just came out on ExxonMobil, day after I said XOM  would fall about 20%, or from $83 to $70s. But I didn't base it on any event, just the charts. I guess the even I did base on was simply that if OIl went down, their profits would go down, but it could have been any event.

https://oilprice.com/Energy/Energy-General/Exxons-Papua-New-Guinea-Gas-Project-Is-Dead-In-The-Water.html

another one bites the dust.

Edited July 16, 2018 by Top Oil Trader

[Top Oil Trader + 469]

Xom now trading under 82, so maybe, soon.

[Dan Warnick + 6,100]

On 7/17/2018 at 4:23 AM, Top Oil Trader said:

Here is the news that just came out on ExxonMobil, day after I said XOM  would fall about 20%, or from $83 to $70s. But I didn't base it on any event, just the charts. I guess the even I did base on was simply that if OIl went down, their profits would go down, but it could have been any event.

https://oilprice.com/Energy/Energy-General/Exxons-Papua-New-Guinea-Gas-Project-Is-Dead-In-The-Water.html

another one bites the dust.

I had a long detailed look at Exxon and Chevron and both of them have debt levels that require high oil prices in order to maintain the servicing of that debt. Their own statements say as much, but the wording they use puts rose colored glasses on it all. Therefore it only follows that if oil goes down so will their stock.  Other oil giants don't seem to have the same circumstances and might mean they can handle lower prices without too much difficulty. 

However, if world recessions hit, and if demand falls for whatever reason (including recession), then I believe oil prices and all oil company stocks will plummet and track back up only relative to recovery of world markets (years).

[Top Oil Trader + 469]

right by the time oil recession hits, guess what oil will be a lot lower, by then most will have missed the move.

[Top Oil Trader + 469]

the reason xom will go down, is due to lower profits when oil goes down, and their recent 19 bill invesment which may go bust

[Top Oil Trader + 469]

Exon now trading at 80. Ok maybe 70 wont reach, but you must admit it was a nice short. 2 bad events in that time, accounting probe and failed investment in Asia.