WTI Crude Rises 30% to $120 Pushing Exxon Mobil Towards Record High
WTI futures jumped to $120 per barrel, a 30% gain since Feb. 20, lifting Exxon Mobil shares 23% YTD and nearing the $147 all-time high. Iran tensions over a possible Strait of Hormuz closure threaten over 30% of global supply, fueling crude rallies and boosting Exxon’s profit potential.
1. WTI Crude Futures Climb to $120 per Barrel
WTI crude futures surged overnight to $120 per barrel, marking a 30% increase since February 20. This move brings prices within 18% of the $147.27 record set in July 2008 and surpasses the June 2022 peak of $123.64, underscoring unprecedented volatility in global oil markets.
2. Strait of Hormuz Risks Escalate Supply Concerns
Escalating US-Iran tensions have raised the prospect of an Iran-led closure of the Strait of Hormuz, a chokepoint that carries over 30% of global oil exports. Major producers at risk include Saudi Arabia (10.8 mbd), UAE and Iraq (4.5 mbd each), Kuwait (2.8 mbd), Qatar (1.8 mbd) and Iran (4.6 mbd), amplifying supply disruption fears.
3. Exxon Mobil Set to Benefit from Elevated Oil Prices
Exxon Mobil shares have climbed 23% year-to-date as energy stocks rally on higher crude. With profit margins expanding alongside rising benchmarks, Exxon’s revenue outlook strengthens and positions the company to outperform broader markets should oil approach historic highs.