Could ExxonMobil Stock be a Winner in 2021 after a Dismal 2020?
Last Updated: January 6, 2021
2020 was a dismal year for energy companies like ExxonMobil (XOM) as crude oil prices plummeted during the year. However, things are looking up for the battered energy sector in 2021.
2020 was among the worst year for oil and gas companies. The WTI (West Texas Intermediate) contract turned briefly negative in April. It was the first time that energy prices had turned negative in history. However, it showcased the troubles faced by energy companies. Energy stocks like ExxonMobil were among the worst-performers of 2020.
ExxonMobil lowered dividend in 2020
While crude oil demand plummeted during the COVID-19 pandemic, US shale producers could not immediately cut their production. This led to a glut of crude oil in the market and producers were willing to offer money to take the oil from the fields as is reflected in the WTI contract turning negative. The fall in crude oil prices prompted companies like ExxonMobil to lower their dividends in a bid to control their cash outflows.