{"id":163220,"date":"2020-01-14T10:45:24","date_gmt":"2020-01-14T15:45:24","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=163220"},"modified":"2020-01-14T07:53:09","modified_gmt":"2020-01-14T12:53:09","slug":"xom-brent-analysis-exxon-mobil-sells-low-return-assets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/xom-brent-analysis-exxon-mobil-sells-low-return-assets\/","title":{"rendered":"XOM\/BRENT Analysis: Exxon Mobil sells low-return assets"},"content":{"rendered":"
January 14, 2020<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

Exxon Mobil sells low-return assets<\/strong><\/p>\n

In this review, we suggest considering the personal composite instrument (PCI) XOM_Brent. It reflects the price dynamics of stocks of the US oil company Exxon Mobil Corporation against a physically delivered Brent crude oil futures contract. Will the XOM_Brent<\/a> rise?<\/p>\n

The growth of this PCI means that Exxon Mobil stock prices are rising faster than oil. In the last 9 months, they have strongly diverged in dynamics from the Dow Jones Industrial Average, which grew by 9.5%. At the same time, Exxon Mobil stocks fell by 13.5%. The main negative factor was the forecast of a decrease in operating results in the 4th quarter of 2019. To improve its financial performance, Exxon Mobil is going to sell low-return assets worth $25 billion by 2025. The funds will be used for capital investments in projects with higher profitability and payments to shareholders. Exxon Mobil’s dividend yield is 5% per annum. Oil prices, in turn, are falling due to subsiding tensions in the Middle East and a decrease in demand for gas in the United States. According to the U.S. Energy Information Administration, gasoline inventories reached a 4-year high last week. In 2019, car sales fell by 1.4% in the US, and by 8.2% in China. This may become a global trend and negatively affect oil prices.<\/p>\n

\"XOM_Brent\"<\/p>\n

On the daily timeframe, the XOM_Brent: D1<\/b> overcame the resistance line of the downtrend. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of the improvement of the financial performance of Exxon Mobil and stagnation in the global oil market.<\/p>\n