Shares of energy giant Exxon Mobil surged to a new all-time high on Wednesday, continuing a stellar run this year on the back of rising oil and gas prices, which analysts warn could remain elevated well into late 2022.
Shares of Exxon Mobil jumped over 1% to a new record high on Wednesday, trading at around $105 per share, as the energy sector continues to outperform the rest of the market on rising oil and gas prices.
Evercore ISI analyst Stephen Richardson upgraded Exxon to a “buy” rating on Tuesday with a price target of $120 per share, arguing that the stock is still trading at a discount and has room to run higher even after surging more than 60% so far this year.
Oil prices continued to rise on Wednesday: The price of US benchmark West Texas Intermediate sits at around $120 per barrel, while international benchmark Brent crude is approaching $122 per barrel.
What’s more, gas prices have also spiked and now sit at nearly $5 per gallon nationally, according to AAA data, with prices averaging well above $5 in over a dozen states.
A host of Wall Street strategists expect oil prices to climb even further, however: Goldman Sachs analysts raised their third quarter forecast to $140 per barrel from $125 per barrel on Tuesday, while Morgan Stanley sees it rising to at least $130 per barrel if not as high as $150 per barrel.
“The oil market is expected to remain tight as the supply side will continue to tell a story of low inventories,” says Edward Moya, senior market analyst for Oanda, who adds, “Crude oil inventories will likely post more draws as the driving season and vacationing heats up.”