Markets Tumble as Chevron and Exxon Rally

While the markets are being slammed on the back of Libya, Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) are spiking dramatically higher. This is a clear reaction to a major spike higher in oil. Libya is the largest producer of oil in North Africa and accounts for about 2% of the worlds output. In addition, fear continues that the revolts all over the Middle East and Northern Africa could spread to more important countries like Saudi Arabia. Should this happen, oil would skyrocket even higher. Exxon and Chevron are both enjoying the higher price of oil thus far.

If oil continues to rise, it will eventually knock demand in a major way.  Some thing that will occur when oil reaches $100 per barrel while others think that level may be near $115 per barrel. Either way, Exxon and Chevron are strong in an otherwise ugly market as their profits could soar. The stock prices are factoring in this increase in profits. If oil continues to move higher, both stocks may start to sell off as demand would suffer in a major way. Watch closely, stay tuned.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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