Exxon Mobil (XOM) was off to a slow start early yesterday morning. However, throughout the day, gains started to pick up the pace. In afternoon trading, a big announcement was made by OPEC, leading to further gains. We'll talk about the announcement, what it has to do with Exxon Mobil, and what binary options traders should be watching for ahead.

OPEC Announces Cuts To Oil Production

For some time now, increasing production of oil has led to major issues in the oil and energy industry as a whole. Because of the shear size of this market, the low prices have even done their part to devastate some economies around the world. Throughout the crisis, the world's top oil producers couldn't seem to come to an agreement to put a cap on increasing production levels. However, yesterday was the end of a three-day meeting, and the meeting closed with a successful agreement.

According to an announcement made yesterday, OPEC producers have agreed to modest oil output cuts. This is the first time we've seen this type of deal in about 8 years. In the announcement, OPEC said that it would reduce oil production to between 32.5 and 33.0 million barrels per day. While not a massive decline from current production levels at 33.24 million barrels per day, the reduction is a much needed move to stabilize the industry. However, there are still quite a bit of questions. OPEC hasn't released information with regard to which countries will produce what amounts of oil. There's some concern with regard to Iran reverting back to pre-sanction production levels. At the end of the day, the deal has been made, but the logistics are far from complete.

What Does This Have To Do With Exxon Mobil?

At the end of the day, this really has everything to do with Exxon Mobil. Exxon is a company that does its business in the oil and gas sector. The company produces oil, refines it into products like gasoline and diesel fuel, and even sells it to the end consumer. If there is a step in the process from mining to consumption, chances are that Exxon Mobil has its hand in it somewhere.

As a result of their dealings in the oil and gas market, Exxon Mobil is also highly exposed to oil prices. Higher prices are a great thing while lower prices lead to declines in revenue. Yesterday's agreement announcement from OPEC is a step in the direction of solving the supply glut problem and balancing the oil market. At the end of the day, this equates to better potential revenue for Exxon ahead.

What Binary Options Traders Should Be Watching Ahead

As binary options traders, our job is to take advantage of trends in the market. Considering the news from OPEC, we're seeing quite a bit of movement surrounding Exxon Mobil, leading to several opportunities for traders. When trading the stock, there is one bit factor that binary options traders should be watching for.

That factor is how the news portrays the deal. The truth is that the deal is great because it shows that an effort is being made to solve the larger problem. However, the lack of details, in combination with the minimalist approach can be viewed as negative. Chances are that the way investors view the move will be largely dictated by the way the media portrays the story. So, when trading Exxon Mobil, it's a good idea to keep a close eye on what the media is saying about the OPEC deal and whether they are parsing the news as positive or negative.

What Do You Think?

Where do you think Exxon Mobil is headed moving forward? Join the discussion in the comments below!