New York, Feb 2, 2026, 10:46 EST — Regular session
- Exxon shares dipped roughly 1.6% after crude prices plunged close to 5%, dragging U.S. energy stocks down
- Traders cited a shrinking Middle East “risk premium” and a firmer dollar as factors pressuring oil prices
- Attention now turns to U.S. oil inventory figures due Feb. 4, followed by the jobs report on Feb. 6
Exxon Mobil shares slipped Monday, dragged down by a steep slide in oil prices weighing on the sector. The stock dipped 1.6% to $139.17, bouncing between $138.17 and $140.73 during the session.
The shift was significant since Big Oil shares often act as a stand-in for crude prices: drop in oil, and analysts slash cash flow forecasts, which then shakes buyback plans and dividend stability. On Monday, the S&P energy index lagged all major sectors, with Exxon and Chevron each slipping roughly 1.6%. (Reuters)
Crude prices dropped after U.S. President Donald Trump said Iran was “seriously talking” with Washington, a comment traders took as a sign tensions easing—pressures that had driven prices higher in January. UBS analyst Giovanni Staunovo highlighted reduced Middle East risks and fewer supply disruptions, while PVM’s Tamas Varga pointed to a combination of a fading geopolitical “risk premium” and a stronger dollar. (Reuters)
The oil drop came amid a wider commodities selloff rattling investors across markets. Reuters noted the slide was worsened by a stronger dollar and fears that higher-for-longer interest rates could hit harder, especially after Trump’s nomination of Kevin Warsh as the next Federal Reserve chair increased hawkish expectations. (Reuters)
Exxon’s story was straightforward: weaker crude weighed on its upstream pricing power. “Upstream” refers to the oil and gas production segment—the area most sensitive to spot price swings.
Some traders pointed out what didn’t happen: no new Middle East supply shock, no unexpected OPEC+ production cut. The group held March output steady, pushing the market to focus more on demand and inventory data.
The bearish outlook can reverse fast. Should U.S.-Iran talks hit a snag, or if shipping or production face hiccups elsewhere, crude prices could shift within hours—and energy stocks typically move in step.
U.S. inventory data follows. The Energy Information Administration’s weekly petroleum report drops on Feb. 4. This release often sways short-term outlooks on demand and refinery operations. (U.S. Energy Information Administration)
Macro traders are zeroing in on U.S. labor figures for hints about interest rates and the dollar. The Labor Department will release its January jobs report on Feb. 6. (Bureau of Labor Statistics)
Exxon investors are focused primarily on oil prices and interest rates, with any new news that shifts perceptions of supply risk closely watched.
