The stock of Chevron (CVX) and other oil producers are rising as the price of crude surpasses $80 a barrel.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
CVX stock is up 2% on an otherwise down day for the market. Other oil stocks that are up include Occidental Petroleum (OXY) and Devon Energy (DVN). Stocks in the energy sector are gaining ground as Brent crude oil, the international standard, has risen for three consecutive days to now trade at $81.26 a barrel, its highest level in more than four months.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, has gained 2% to trade at $78.80 a barrel, its highest level since last August. The price of oil is steadily rising on concerns that wider U.S. sanctions on Russian oil will negatively impact exports to top global buyers such as India and China.
New U.S. Sanctions
Since the start of the year, both Brent and WTI crude oil have risen about 6%, increasing on news that the U.S. government has imposed broader sanctions on Russian oil. The newest sanctions target Russian producers Gazprom Neft and Surgutneftegaz, as well as 183 vessels that have shipped Russia’s crude oil. The sanctions are in response to Russia’s ongoing war in Ukraine.
Russian oil exports will be severely hurt by the new sanctions, requiring China and India to source more crude oil from the Middle East and the U.S. and Canada, which will boost prices and shipping costs, according to analysts. China remains the world’s biggest importer of crude oil.
Analysts at U.S. investment bank Goldman Sachs (GS) say Brent crude prices could rise as high as $85 in the near-term due to the new sanctions on Russian energy products. It remains to be seen if the new sanctions on Russian oil will be undone by the incoming administration of president-elect Donald Trump.
CVX stock has increased 13% over the last 12 months.
Is CVX Stock a Buy?
Chevron’s stock has a consensus Strong Buy rating among 18 Wall Street analysts. That rating is based on 15 Buy, three Hold, and no Sell recommendations issued in the past three months. The average price target on CVX stock of $175.88 implies 13.72% upside from current levels.