Oil has pulled back and found strong support around US$90/bbl and has now resumed its uptrend. Exxon, being the world’s 2nd largest energy company (behind Saudi Aramco) has followed suit. Recession fears drove the recent ~25% decline however ultimately, we think supply-side constraints caused by ESG concerns plus importantly, the rising costs of new development will keep energy prices high for an extended period underpinning very strong cash flow across the sector.
MM is bullish XOM below $US90
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