Exxon Mobil shares close higher on Tuesday, company said to be negotiating potential US gas deal with Qatar

According to a Tuesday report by the Wall Street Journal, citing sources with knowledge of the matter, Exxon Mobil Corporation (XOM) is currently negotiating a potential deal with Qatar, which would enable the Middle Eastern country to invest in Exxons US gas resources.

Exxon Mobil shares closed higher for the second time in the past five trading sessions on Tuesday. It has also been the sharpest daily surge since September 28th 2016. The stock went up 2.94% ($2.20) to $77.07, after touching an intraday high at $77.77, or a price level not seen since February 28th ($78.25).

In the week ended on April 8th the shares of the energy company added 0.35% to their market value compared to a week ago, which marked a second consecutive period of gains.

The stock has extended its advance to 3.30% so far during the current month following a 1.49% drop in March. The latter has been a second straight month of losses.

For the entire past year, the shares of the NYSE-listed energy giant went down 7.33% following a 15.79% surge in 2016.

According to the WSJ, the deal could be organized as a joint venture, where Qatar, via state-owned Qatar Petroleum, could either form a partnership with Exxon, or invest in future wells with the company’s unit, XTO Energy. However, it remains unknown what amount Qatar plans to invest in Exxons XTO Energy.

The deal with Qatar Petroleum is considered as essential for Exxon Mobil Corp, as the latter needs it in order to proceed with a natural gas-export project in East Texas valued at almost $10 billion, the WSJ said in the report.

The energy giant has already revealed plans to significantly expand production in the Permian basin to 600 000 barrels of oil and natural gas per day by the year 2025.

Currently, Qatar remains among the smallest oil producers within OPEC. On the other hand, the country plays a leading role in the liquefied natural gas market worldwide, as it produces 77 million tonnes of gas per year.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $86.00, with a high estimate of $102.00 and a low estimate of $70.00. The median estimate is an 11.59% surge compared to the closing price of $77.07 on April 10th.

The same media also reported that 14 out of 25 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 5 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Exxon Mobil stock are presented as follows:

R1 – $77.22
R2 – $77.37
R3 (Range Resistance – Sell) – $77.53
R4 (Long Breakout) – $77.98
R5 (Breakout Target 1) – $78.52
R6 (Breakout Target 2) – $78.75

S1 – $76.92
S2 – $76.77
S3 (Range Support – Buy) – $76.61
S4 (Short Breakout) – $76.16
S5 (Breakout Target 1) – $75.62
S6 (Breakout Target 2) – $75.39

By using the traditional method of calculation, the weekly levels of importance for Exxon Mobil Corporation (XOM) are presented as follows:

Central Pivot Point – $74.45
R1 – $76.74
R2 – $78.61
R3 – $80.90
R4 – $83.19

S1 – $72.58
S2 – $70.29
S3 – $68.42
S4 – $66.55