While the markets are being slammed on the back of Libya, Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) are spiking dramatically higher. This is a clear reaction to a major spike higher in oil. Libya is the largest producer of oil in North Africa and accounts for about 2% of the worlds output. In addition, fear continues that the revolts all over the Middle East and Northern Africa could spread to more important countries like Saudi Arabia. Should this happen, oil would skyrocket even higher. Exxon and Chevron are both enjoying the higher price of oil thus far.
If oil continues to rise, it will eventually knock demand in a major way. Some thing that will occur when oil reaches $100 per barrel while others think that level may be near $115 per barrel. Either way, Exxon and Chevron are strong in an otherwise ugly market as their profits could soar. The stock prices are factoring in this increase in profits. If oil continues to move higher, both stocks may start to sell off as demand would suffer in a major way.