Bank of America has downgraded Exxon Mobil to a neutral rating, citing worries that oil prices may decrease further if a ceasefire is achieved between the U.S. and Iran. The analysts noted that approximately 20% of Exxon's global production is constrained in the Middle East due to ongoing disruptions in the Strait of Hormuz.
This situation raises concerns about Exxon's ability to capitalize on rising oil prices, particularly as the company prepares to report its second-quarter earnings on Friday. The downgrade reflects a cautious outlook for Exxon amid geopolitical uncertainties that could impact oil supply and pricing