Oil Price slide, Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), Royal Dutch Shell plc (ADR) (NYSE:RDS.A) And BP plc (ADR) (NYSE:BP) Stocks To Face Pressure

Oil Price slide, Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), Royal Dutch Shell plc (ADR) (NYSE:RDS.A) And BP plc (ADR) (NYSE:BP) Stocks To Face Pressure

0
605
Six Energy stocks That Are Outperforming After OPEC Decided To Cut Oil Production

Except one day last week, oil has been facing more downside pressure. As a result, Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and BP plc (ADR) (NYSE:BP) shares are under pressure. On Monday, oil price dropped more than one percent as worries compounded on increasing rig count could meant more production and supply.

Investors are worried about the OPEC-led production cut impacts on oil price if the American companies keep on increasing their rig counts. The fear is that it would lead to supply glut that would hurt the oil companies’ bottom line or the price realization per barrel.

Libya is reportedly keen to increase its output. The country was exempt from the production cut agreement. This also adds to the bearish sentiment on oil price. According to Reuters report, National Oil Corporation in Libya expressed the confidence of regaining control of two oil ports that have a combined total capacity of 600,000 barrels a day to export.

The threat of further downside cannot be ruled out as International Energy Agency’s recent data pointed out that oil demand could drop to 1.4 million barrels per day from 1.6 million barrels last year. The agency’s outlook was based on slowdown in demand in countries like Germany, Japan, India and Korea. At time of writing this, oil price fell 1.31 percent to $48.14 with the threat of dropping below the $48 a barrel level any time.

The following oil companies stock are worth monitoring on Monday:

  • Royal Dutch Shell plc (ADR) (NYSE:RDS.A) lost 0.51 percent in pre-market trading.
  • BP plc (ADR) (NYSE:BP) shed 0.41 percent in pre-market trading.
  • Exxon Mobile Corporation (NYSE:XOM) fell 0.46 percent in pre-market.
  • Total SA (ADR) (NYSE:TOT) shed 0.16 percent in pre-market trading.
  • Marathon Oil Corporation (NYSE:MRO) lost 0.58 percent on Friday’s close.
  • ConocoPhillips (NYSE:COP) closed with a loss of 0.31 percent on Friday.
  • Chevron Corporation (NYSE:CVX) lost 0.16 percent on Friday.