Why Exxon Mobil Stock Just Hit a New 52-Week High While Oil Prices Tanked 20%

Core Viewpoint - Exxon Mobil shares have reached a new 52-week high, reflecting a resurgence in investor confidence despite a backdrop of declining oil prices and market volatility [2][3]. Group 1: Stock Performance - Exxon Mobil's stock has recovered from a 16% drop in April, hitting an intraday 52-week low of $97.80 per share, and is now just 4% below its all-time high of $126.34 per share reached in October 2024 [2][3]. - The stock has gained ground even as WTI crude oil prices have fallen nearly 20% year-to-date in 2025, currently around $58 per barrel [3][5]. Group 2: Business Operations - Exxon Mobil operates across the full energy value chain, including upstream (exploration and production), energy products (refining and marketing), and chemical products [4][5]. - The upstream business generated $25.4 billion in earnings in 2024, with operations in Guyana remaining profitable at oil prices around $30 per barrel [5][6]. Group 3: Market Factors - Factors contributing to the decline in oil prices include abundant supply from non-OPEC producers, OPEC+ production increases, and softer demand expectations due to potential recession risks [3][4]. - Natural gas prices at Henry Hub have shown strength, with higher spot prices this winter due to cold snaps and rising liquefied natural gas (LNG) export demand, partially offsetting the impact of falling oil prices [4]. Group 4: Financial Health - Exxon Mobil has raised its dividend for 43 consecutive years, currently yielding 3.3%, and targets a breakeven cost of $30 per barrel by 2030 [5].