Shares of Exxon Mobil Corp. (XOM) were on the move higher in Monday's pre-market session, riding a wave of optimism that lifted the entire energy sector. It's one of those days where the market decides it's time for a "risk-on" rally, and big oil names like Exxon often find themselves at the front of the pack.
The catalyst? A familiar old friend for energy traders: geopolitical tension. Specifically, the escalating situation involving the U.S., Israel, and Iran is putting a risk premium back into global oil prices. When traders get nervous about supply disruptions, they buy oil, and that tends to lift the stocks of the companies that produce it. The concern was underscored by reports that two Chinese vessels were blocked from transiting the Strait of Hormuz, highlighting ongoing disruptions and fears over Iran's control of this critical shipping chokepoint, according to market data.
Exxon Doubles Down on Guyana Gas
Separately, and perhaps with an eye on long-term production beyond today's headlines, Exxon is pushing forward with a major project. The company's affiliate, ExxonMobil Guyana Limited, just handed out a significant contract.
It went to SBM Offshore (SBFFF) to carry out Front End Engineering and Design (FEED) studies. The goal? To design a Floating Production, Storage, and Offloading (FPSO) vessel for something called the Longtail development project off the coast of Guyana.
Here's how it will work: SBM Offshore will develop this massive vessel through its Fast4Ward program. They'll use their ninth new-build Multi-Purpose Floater hull and pair it with a bunch of standardized topside modules—think of it as building with high-tech, pre-fabricated blocks. The specs are impressive. This FPSO will be designed to handle 1,200 million cubic feet of gas per day and produce 250,000 barrels of condensate daily. It will be anchored in about 1,750 meters of water and have storage capacity for roughly 2 million barrels of that condensate.
Checking the Stock's Vital Signs
So, the stock is moving. But where does it stand technically? Let's look under the hood.
Exxon is trading well above its key moving averages—10.6% above its 20-day and a hefty 29.6% above its 100-day Simple Moving Average (SMA). That paints a clear picture: the short- and intermediate-term trend is firmly pointed upward. Over the past year, shares are up 43.77%, and they're hanging out much closer to their 52-week highs than their lows, having recently pushed to new peaks.
Now, here's where it gets interesting. The Relative Strength Index (RSI) is sitting at 76.30. For those keeping score, anything above 70 is generally considered "overbought." That's a signal the stock might be a bit stretched in the near term, even if the overall trend is still your friend. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is bullish, with the MACD line at 5.2475 above the signal line at 4.2870, suggesting positive momentum is still intact. Put the overbought RSI and bullish MACD together, and you get a mixed momentum picture.
- Key Resistance: $173.50
- Key Support: $147.50
