Exxon Mobil Corporation closed Friday's trading session at $147.28, marking a decline of 2.44%. The stock moved within a range between $146.47 and $151.63 during the day, with trading volume reaching approximately 25.9 million shares. This drop positions the energy giant at a potentially pivotal moment as markets prepare to reopen, with the company's shares often serving as a liquid proxy for crude oil prices, which have recently been swayed by geopolitical developments.
Broader Market Gains Amid Tariff News
The wider U.S. equity market finished higher, buoyed by a Supreme Court ruling that overturned broad tariffs implemented during the Trump administration. This decision provided a lift to markets that were also processing softer GDP figures and persistent inflation data. "The striking down of these tariffs will benefit corporate bottom lines," noted Tim Ghriskey, a senior portfolio strategist at Ingalls & Snyder. The S&P 500 index advanced 0.69% to close at 6,909.51. The Dow Jones Industrial Average climbed 0.47% to 49,625.97, while the Nasdaq Composite jumped 0.90% to 22,886.07.
Underperformance Among Energy Peers
Exxon's decline was steeper than that of several other major oil companies. Chevron shares edged down 0.46% to $183.93, and ConocoPhillips dropped 0.95% to $110.53. According to recent data, Exxon finished the session roughly 6% below its 52-week high, which was recorded on February 11.
Crude Oil's Volatile Session
Crude oil prices experienced significant volatility, a factor that can swiftly impact stocks with heavy exposure to the sector. Brent crude futures settled at $71.76 per barrel, while U.S. West Texas Intermediate (WTI) crude closed at $66.39. A late-session rally, driven by short-covering as traders unwound bearish positions and increased buying of call options, pushed prices higher. Market sentiment remains tense, caught between anticipation and denial regarding potential geopolitical conflicts, according to analysts. Phil Flynn of Price Futures Group highlighted this anxiety, while Saxo Bank's Ole Hansen pointed to rattled market nerves. Analysts at JPMorgan, including Natasha Kaneva and Lyuba Savinova, continue to note a surplus in oil balances, which presents a headwind for crude prices and the large integrated companies linked to them.
Upcoming Catalysts for Exxon and Oil Markets
Investors face several near-term catalysts. On Wednesday, February 25, the U.S. Energy Information Administration will release its Weekly Petroleum Status Report at 10:30 a.m. Eastern Time. These inventory figures have a history of moving oil futures and, by extension, energy sector stocks. For Exxon Mobil specifically, the next scheduled company event is a fireside chat at the Morgan Stanley Energy & Power Conference, set for March 3 at 10:00 a.m. Central Time. This presentation will be closely watched for management commentary on production plans, capital spending levels, and shareholder return strategies.
Market Context and Forward Outlook
Exxon enters the new week with crude oil hovering around six-month highs and headline risk continuing to swirl around the oil trade. The direction of oil prices will be a primary driver for the stock. Should crude prices retreat and erase the gains from the previous week, Exxon's potential for a rebound could quickly lose momentum. Conversely, a further climb in oil may redirect investment flows back into the energy sector. The immediate focus will be on Wednesday's inventory report, followed by Exxon's conference appearance on March 3. Until then, oil price dynamics and geopolitical developments are likely to set the overall tone for trading.
