In recent years, the oil price has repeatedly attracted attention due to its highly volatile movements. After standing extremely low as recently as the spring of 2020, even showing negative prices at times, it then multiplied by the end of last year to stand at nearly $85. At the end of November it corrected briefly to $63. In the meantime it is back at just under $76.
With inflation and commodity prices on the rise, commodity stocks like Marathon Oil are also benefiting from consistent demand. The American energy company from Texas is primarily active in the production of hydrocarbons and natural gas. The company produces oil in Canada, Equatorial Guinea, Libya, Indonesia, the UK and the USA. The company consistently beat its earnings expectations last year. Third quarter revenue was $1,453 million, a significant increase over the prior year quarter and a 27.1% increase over the prior quarter. The energy company also pays regular dividends and most recently announced share buybacks for half a billion dollars. The company expects to report earnings of $0.54/share and revenue of $1.556 billion when it releases its new quarterly results in February.
The stock rose from a low of under $4 in October 2020 to over $13 in March 2021, and in June of that year broke the downtrend since the high in the summer of 2014. During the summer months, the price tested the trend line as support and rose again to $17.50 at the end of last year. After a slight correction, the price is still in a good position to mark further gains.
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