Exxon Mobil's shares jumped to a new all-time high on Wednesday, continuing a stellar run this year on the back of rising oil and gas prices, which analysts warn could remain elevated well into late 2022.
Exxon shares have increased in value.
Exxon Mobil shares hit a new record high on Wednesday as the energy sector continues to perform better than the rest of the market on rising oil and gas prices.
Stephen Richardson of Evercore ISI upgraded Exxon to a "buy" rating on Tuesday with a price target of $120 per share, arguing that the stock is still trading at a discount and has room to run higher.
The price of the U.S. benchmark West Texas Intermediate is around $120 per barrel, while the international benchmark is close to $122 per barrel.
In over a dozen states, the average price for a gallon of gas is more than $5, with the national average sitting at almost $5 per gallon.
Goldman Sachs analysts raised their third quarter forecast to $140 per barrel from $125 per barrel on Tuesday, while Morgan Stanley expects the price to rise to at least $130 per barrel if not as high as $150 per barrel.
The oil market is expected to remain tight as the supply side will continue to tell a story of low inventories.
Gas prices in particular could rise to levels associated with oil trading near $170 per barrel, according to strategists at Goldman. The firm believes that oil prices need to rally further to normalized low levels of global oil inventories.
The price of oil hit a 14-year high of $139 per barrel in March when Russia invaded Ukraine. While oil has moderated since then, it has remained well above $100 per barrel in recent months, with Wall Street firms calling for a more sustained spike during the second half of 2022. The S&P 500 energy sector has been the best performing part of the market so far this year, rising more than 50%. Excluding Marathon Oil, the other big energy giants have been the top performers.
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