Exxon Mobil’s (XOM) shares have gained in price significantly over the past year, favored by the industry’s tailwinds. However, the stock fell 8.9% during the month. This company produced a strong third-quarter earnings report that reversed the losses from the pandemic period. The newly discovered omicron version of COVID-19 may pose a threat to global oil demand. So will XOM shares rise in value or fall further? Continue reading for our opinion. Exxon Mobil Corporation (NYSE 🙂 Explores and produces in both the United States of America and globally. XOM shares gained 45.1% in price year-to-date to close yesterday’s trading session at $59.79. However, the stock’s price has fallen 8.9% in the past month and 2.4% within the past five trading days. XOM trades at a level above its 200 day moving average, but lower than its 50-day average.

Recent plans were revealed by the company to boost its investment in low-carbon projects as well as to reach its target of reducing greenhouse gas emission levels by year’s end. This is nearly four years more than the previous forecast. XOM plans to maintain its annual capital expenditure between $20 billion and $25 billion by 2027. This spending increase will allow XOM to earn double-digit returns, even when oil prices drop to $35 per barrel.

The COVID-19 variant omicron has been identified and raised concerns. After confirmation that there was an omicron in the U.S., oil prices dropped significantly on December 1. WTI and WTI front month contracts saw their sharpest percentage declines in November since March 2020. They were down 16% and 21% respectively. XOM lost marginally in trading on December 1. XOM shares may retreat further if worries about the potential slowdown in economic activity due to the omicron variation could intensify.

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