NEW YORK (TheStreet) -- Shares of Exxon Mobil (XOM) closed down 0.46% to $84.68 on Wednesday amid falling oil prices, and after the company stopped operations at three oil platforms off Santa Barbara because it couldn't deliver to refineries, the Associated Press reports.
Crude oil (WTI) is falling 1.2% to $60.28 per barrel and Brent crude is slipping by 1.3% to $63.61 per barrel this afternoon, according to the CNBC.com index.
Oil prices are falling as there is an unexpected rise in gasoline stocks, but a greater than expected decline in U.S. crude inventories, Reuters reports.
Additionally, the company couldn't deliver to refineries in California due to a pipeline that broke on May 19, spilling 101,000 gallons of crude on the Santa Barbara coast, Exxon Mobil stated. The pipeline was operated by Plains All American Pipeline (PAA).
Federal investigation showed that the two-foot-wide pipe was "severely corroded" where it ruptured. While the shutdown will not have an impact on oil prices, it does harm Exxon Mobil's bottom line, the AP noted.
Separately, TheStreet Ratings team rates EXXON MOBIL CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXXON MOBIL CORP (XOM) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow."