Big oil is a major theme for traders next week, with giants ExxonMobil and Chevron both reporting. From a sector perspective, energy names are expected to report the biggest drop in annual earnings (-37%). However, the quarterly picture looks to provide a more positive shift according to ExxonMobil estimates, with earnings per share expected to reverse upwards after four consecutive declines. The obvious driver of revenues will be the value of underlying commodities, with the Brent global benchmark rising from $72 per barrel to $97 over the three-month period.
According to an October disclosure from ExxonMobil, the company expects profits to receive a healthy boost from higher oil, gas and fuel prices. That has lifted the outlook for earnings and revenues, with operating profits expected between $8.3 billion and $11.4 billion. That would represent a rise from the second quarter, but below the figure a year ago.
The recent purchase of Pioneer Natural Resources highlights the consolidation seen in US shale, with ExxonMobil now the biggest player. Despite speculation that Joe Biden’s policies could lead to the demise of US oil, we have seen record output this year. With this purchase, they have hugely strengthened their footprint in the largest oil producing region in the US (Permian Basin). This signals to investors that they play to continue their focus on fossil fuels as competitors such as Shell transition towards a green strategy.
From a charting perspective, the recent intraday double bottom looks to bring a bullish theme heading into
XOM earnings. That pattern took place above the 76.4% Fibonacci support level, with the break up through the $112 neckline bringing a more bullish picture into play.
From a wider perspective, the pattern of higher lows does look likely to persist, with a break below the $100 mark required to bring an end to that trend. The weekly chart highlights the uptrend very well, with a move up towards the $120 looking a distinct possibility as a result.
According to an October disclosure from ExxonMobil, the company expects profits to receive a healthy boost from higher oil, gas and fuel prices. That has lifted the outlook for earnings and revenues, with operating profits expected between $8.3 billion and $11.4 billion. That would represent a rise from the second quarter, but below the figure a year ago.
The recent purchase of Pioneer Natural Resources highlights the consolidation seen in US shale, with ExxonMobil now the biggest player. Despite speculation that Joe Biden’s policies could lead to the demise of US oil, we have seen record output this year. With this purchase, they have hugely strengthened their footprint in the largest oil producing region in the US (Permian Basin). This signals to investors that they play to continue their focus on fossil fuels as competitors such as Shell transition towards a green strategy.
From a charting perspective, the recent intraday double bottom looks to bring a bullish theme heading into
XOM earnings. That pattern took place above the 76.4% Fibonacci support level, with the break up through the $112 neckline bringing a more bullish picture into play. From a wider perspective, the pattern of higher lows does look likely to persist, with a break below the $100 mark required to bring an end to that trend. The weekly chart highlights the uptrend very well, with a move up towards the $120 looking a distinct possibility as a result.
Penafian
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.