Here's Why Shares in Chevron Slumped Today
Shares in integrated oil major (NYSE: CVX) declined by 5.3% by 11 a.m. today. There's no arguing over the reason: the 15% drop in oil prices as a consequence of the agreement for a two-week ceasefire between the U.S. and Iran.
Investors have been buying stocks like Chevron to hedge against the risk of a prolonged conflict and its impact on global energy prices. As such, when that risk recedes, as it appears to have done today, it's understandable if the market reacts by selling off oil and stocks like Chevron, which are bought as proxies for oil prices.
Still, it's worth taking a step back and looking at the bigger picture here. The 15% drop in oil prices just means it's trading at about $95 per barrel at the time of writing, a significant premium to the $58 per barrel it traded at at the start of the year. That's good news for Chevron's upstream (exploration and production) interests.
Source Fool.com
Chevron Corp. Stock
With 47 Buy predictions and 3 Sell predictions Chevron Corp. is one of the favorites of our community.
On the other hand, the target price of 162 € is below the current price of 166.7 € for Chevron Corp., so the potential is actually -2.82%.
