On the way to being up 25% over the last year, ExxonMobil (XOM) paused. In mid-December, the stock hit $79. By mid-March, it was below $70. But, that was short-lived. The shares now change hands just below. $80.

Earnings for the big oil companies were a bit off in Q4, primarily due to a drop in the price of oil in the second half of last year. But, oil is back above $63.

Short interest in Exxon dropped from 58.1 million shares in March to 49.8 million shares in April. The shorts appear to have been smart to get out of the way.

There is clearly some sentiment that oil is going to continue to push upward as the summer driving season approaches and demand does not seem to be abating here or in other large markets like China.

Great news for Exxon until the well runs dry.

Douglas A. McIntyre