Since March, the conflict in Iran has driven oil prices through the roof, with Brent crude skyrocketing to over $120 per barrel in late April.
This surge has propelled oil stocks, including oil and gas giant ExxonMobil (NYSE: XOM), which rose as much as 13% in March alone
Oil prices have subsided in recent weeks amid a fragile ceasefire, and oil stocks have followed. However, even if the conflict ends soon, there are discussions that reopening the Strait of Hormuz, a critical oil shipping channel for the Middle East, might not be straightforward. With oil trading around $100 per barrel and ExxonMobil down 12% from its recent high, now might be the time to buy the dip.
Here’s why. ExxonMobil owns low-cost, high-quality production assets ExxonMobil is a giant in the oil and gas industry and is the second-largest oil company in the world, trailing only Saudi Aramco. The company operates an integrated business model, meaning it has operations across the oil production chain, including upstream production and downstream refining.