NEW YORK (TheStreet) -- Shares of Exxon Mobil Corp, (XOM) are down -0.41% to $96.63 in pre-market trade as the company finds its deal to drill for oil in Russia's Arctic Sea caught up in U.S. foreign policy, which could threaten one of the company's best chances to find and tap significant-and much needed-amounts of crude oil, the Wall Street Journal reports.
The U.S. yesterday announced new sanctions targeting Russia's financial, defense and energy sectors in a move to punish them for their military conflict with Ukraine.
A U.S. official said the new penalties would affect Exxon's current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft. The extent of the impact was unclear, the Journal added.
No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic that could hold the equivalent of billions of barrels of oil and gas., the Journal said.
TheStreet Ratings team rates EXXON MOBIL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXXON MOBIL CORP (XOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."