This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Exxon Mobil Has a Lot to Lose in a Sanctioned Russia

NEW YORK (TheStreet) -- I was talking to Joe Deaux today about the Ukraine crisis and the recent rebound in crude prices. It's true that the drama in Crimea and the possibility of further Russian action is having a constructive effect on prices, but that's only one small part of the crude story. There are other ways that events in Ukraine are impacting the energy space.

There is the threat of further economic sanctions being imposed by the United States. So far, only a few individuals inside the inner circle of the Kremlin are being subjected to sanctions, but there have been suggestions of extending those restrictions to a few companies that do business in Russia. And the first company that comes to mind with significant business in Russia is Exxon Mobil (XOM - Get Report).

Sanctioning, or trying to limit Exxon's work in Russia would be a truly debilitating blow to both Exxon and the Russians. The largest energy company in Russia, Rosneft, has developed a partnership with Exxon on two of the largest potential future energy projects Russia has -- in the Arctic and with LNG on Sakhalin Island. If you are a shareholder in Exxon, you have to consider the unlikely possibilities both of further action by Putin in Eastern Ukraine and the likelihood of that being followed by company-specific sanctions imposed the United States.

I talk more about this with Joe in the video above.

At the time of publication the author had a position XOM.

Must Read: The Deal: European Stocks Slip Amid Cautious Trading Mood

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

At the time of publication, Dicker was long XOM, but positions can change at any time.

Dan Dicker has been a floor trader at the New York Mercantile Exchange with more than 25 years of oil trading experience. He is a licensed commodities trade adviser.

Dan is currently President of MercBloc LLC, a wealth management firm and is the author of "Oil's Endless Bid," published in March of 2011 by John Wiley and Sons.

Dan Dicker has appeared as an energy analyst since 2002 with all the major financial news networks. He has lent his expertise in hundreds of live radio and television broadcasts on CNBC, Bloomberg US and UK and CNNfn.

Dan obtained a bachelor of arts degree from the State University of New York at Stony Brook in 1982.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
XOM $88.11 0.00%
AAPL $94.98 -0.21%
FB $116.77 -0.56%
GOOG $692.36 0.00%
TSLA $230.00 -1.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs