The stocks of oil majors Chevron (CVX), Exxon Mobil (XOM), and Occidental Petroleum (OXY) are up about 1% each after the OPEC+ cartel maintained its forecast for global crude demand this year and next.
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In a new outlook report, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) said that air and road travel will continue to support consumption and that trade tariffs are unlikely to impact economic growth around the world.
Consequently, OPEC+ reiterated that world oil demand will rise by 1.45 million barrels per day (bpd) in 2025 and 1.43 million bpd in 2026. OPEC’s view on oil demand is at the higher end of industry forecasts and it expects oil use to continue rising in coming years.
Contrary Views
The cartel’s outlook is at odds with the International Energy Agency (IEA), which sees demand peaking this decade as the world transitions to cleaner fuel sources. The IEA sees 2025 demand growth at 1.05 million bpd, lower than OPEC+.
In its latest forecast, OPEC+ said the trade policies of U.S. President Donald Trump have added some uncertainty to global financial markets, potentially creating supply-demand imbalances. However, the cartel does not think the threat of trade tariffs is enough to slow economic growth and impact oil demand.
Crude Prices
“It remains to be seen how and to what extent potential tariffs and other policy measures will play out,” OPEC+ said in its report. OPEC+ has undertaken a series of output cuts since late 2022 to support the price of crude oil. Its current plan calls for oil output to be gradually increased starting in April.
Brent crude oil, the international standard, is currently trading at $75.02 per barrel, while West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading at $71.35 a barrel.
Is CVX Stock a Buy?
Chevron’s stock has a consensus Strong Buy rating among 17 Wall Street analysts. That rating is based on 14 Buy and three Hold recommendations assigned in the past three months. The average CVX price target of $177 implies 13.59% upside from current levels.
