ExxonMobil shares drop to 15-year low on tumbling oil prices, excess supplies

    Just over a week before its CEO is scheduled to present a long-term strategic plan to investors and analysts, shares in ExxonMobil Corp. fell to a 15-year low Monday, Bloomberg reports, amid a broad selloff in equity and commodity markets.

    ExxonMobil dropped 4.7% to close at $56.36 on Monday in New York as Brent crude tumbled to about $56 a barrel. The last time the Texas-based driller’s stock traded at this level was the end of 2005, when crude fetched $59.

    The shares have been under pressure since ExxonMobil disclosed disappointing fourth-quarter results. Prospects for a near-term recovery were also dimmed by the spreading coronavirus. Excess supplies of natural gas, chemicals and motor fuels weighed on the company, as well.

    It’s happening as CEO Darren Woods hopes to rebuild ExxonMobil’s portfolio of crude and gas projects through new drilling from Guyana to Mozambique. However, investors have balked at the huge cost tied to the strategy, which Woods is slated to defend during a presentation March 5 in New York.

    Meanwhile, the oil and gas giant is facing backlash in Baton Rouge for the way it notified—or, in some instances, allegedly failed to notify—nearby residents of the fire that erupted in its north Baton Rouge refinery Feb. 11 around 11 p.m. State Sen. Cleo Fields, D-Baton Rouge, plans to bring forth legislation aiming to address the issue. The fire released tens of thousands of pounds of chemicals, according to the company’s seven-day report, though 98% of them are believed to have burned in the blaze, with air quality monitoring deeming the community safe. Read the story in Bloomberg.

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