Exxon Mobil Corporation’s (NYSE: XOM) shares fell sharply on Monday after talks between OPEC and its allies failed in Vienna.
What Happened
Exxon Mobil shares suffered their steepest decline in 11 years on Monday in an upheaval that saw broad declines in energy stocks. The oil company’s market value is now at its lowest level since it took over Mobil Corp. in 1999, according to Bloomberg.
Trading in S&P500 was halted minutes after Monday’s opening when the index’s fall of 7% triggered the circuit
breakers. Market anxieties were rife due to a possible price war between OPEC, the cartel of oil-producing countries, and its ally Russia after they failed to agree on a deal in Vienna on Friday.
Why It Matters
Exxon Mobil is America’s largest oil company. The market value or capitalization of the oil giant has halved since its heyday in 2014. The company’s current market cap stands at 177.16 billion. Before Monday’s opening, the company was valued at $201.83 billion.
Oil price drops affect Exxon Mobil and its peers. Price wars between OPEC and other energy-producing nations could lead to a further 43% drop in oil prices and the possibility of the commodity selling for $20 a barrel, according to Goldman Sachs.
Key energy shares were in the red on Monday. Rival Chevron Corporation (NYSE: CVX) stock fell 15.37% to $80.67. Diamondback Energy Inc. (NASDAQ: FANG), Hess Corp. (NYSE: HES) and Marathon Oil Corp. (NYSE: MRO) fell steeply by 44.65%, 33.68%, and 46.81% respectively.
Price Action
Exxon Mobil shares traded 3.68% higher at $43.40 in the after-hours session on Monday. The shares had closed the regular session 12.24% lower at $41.86.
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https://www.benzinga.com/news/20/03/15513735/exxon-mobil-stocks-tank-in-market-blood-bath-after-opec-talks-fail
2020-03-10 05:19:31Z
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