This Is Why Exxon Mobil Corporation (XOM) Is Hiking Plastics Prices

Exxon Mobil Corporation (NYSE:XOM) is one of the top S&P 500 stocks by index weight. On April 14, Bloomberg reported that ExxonMobil Corporation (NYSE:XOM) is among the companies hiking prices for plastics. The price increase comes as the sector grapples with supply shocks triggered by the US-Israel war in Iran.

This is Why Exxon Mobil Corporation (XOM) is Hiking Plastics Prices

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Exxon and Nova Chemicals have already announced an April increase of 30 cents per pound, a significant increase from the 20-cent hike initially planned. The increase comes on the heels of US petrochemical production surging amid the Middle East conflict, halting marine traffic through the Strait of Hormuz.

On April 10, BMO Capital Markets reiterated a Market Perform rating on Exxon Mobil and a $160 price target, even as the company’s operations face significant disruption from the Middle East conflict. The company says it expects first-quarter earnings of $1.87 a share, better than the $1.71 a share delivered in the fourth quarter.

Exxon Mobil Corporation (NYSE:XOM) is a premier global integrated energy company and the largest oil and gas corporation in the United States. It produces, refines, and markets oil and natural gas while manufacturing petrochemicals, plastics, and specialty products. Key operations include high-margin upstream projects in the Permian Basin and Guyana.

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