Here's Why Chevron Stock Dipped Lower Today
Shares in integrated major energy company (NYSE: CVX) declined by 4.6% to 11:30 a.m. The stock fell as the price of oil dipped by a couple of percentage points to below $100 a barrel. That was enough to encourage selling from investors buying into stocks like Chevron and other highly liquid energy stocks as a way to play rising energy prices.
The move downward in oil is likely a reaction to President Trump's allusion to a conclusion to U.S. attacks on Iran in the next couple of weeks. But here's the thing. The Strait of Hormuz is still almost entirely closed to commercial energy traffic; it's not clear how long it will take to repair the damage to energy infrastructure in the region, and there's no guarantee Iran will reopen the Strait under normalized conditions even if the U.S. stops attacking Iran.
Image source: Getty Images.
Source Fool.com
Chevron Corp. Stock
The stock is one of the favorites of our community with 49 Buy predictions and 3 Sell predictions.
As a result the target price of 165 € shows a slightly positive potential of 1.84% compared to the current price of 162.02 € for Chevron Corp..
