rtmark
LearnBonds.com

Chevron Stock Price Presents a Buying Opportunity After Attack On Saudi Oil Industry

Chevron (NYSE: CVX) stock price is likely to form bullish trend in the coming days following Yemen’s Iranian-aligned Houthi rebels drone attack on the heart of the Saudi oil industry.

The drone attack has erased almost half of Saudi oil production. This accounts for close to 5% of global production. The substantial decline in Saudi oil production is likely to offer a huge boost to oil prices.

Chevron Stock Price Presents...

Brent oil price soars sharply by 19% after attacks, making it the biggest intra-day jump since 1991. U.S. West Texas Intermediate (WTI) futures also increased as much as 15.5% to $63.34 a barrel on Monday, the biggest intra-day percentage gain since 1998.

The attack on the world’s largest processing facilities has erased oil output by 5.7 million barrels per day. Armco, on the other, has not provided a deadline for the resumption of oil output.

Companies like Chevron are likely to benefit from the steep increase in oil prices. It is well set to generate steady growth in production. The growth in oil prices would significantly add to Chevron’s third-quarter revenues, earnings and cash flows.

Its focus on high growth areas like Permian basin is likely to enhance its overall production potential at a high single-digit rate in the coming quarters.

In the latest quarter, its worldwide net oil-equivalent production stood around 3.08 million barrels per day. This represents an increase of 9% from a year-ago period.

Michael Wirth, Chevron’s chairman of the board and the chief executive officer said. “Net oil-equivalent production was the highest in the company’s history, driven by continued growth in the Permian Basin and at Wheatstone in Australia.”

Chevron Stock Price Presents...

The production growth is driven by shale and tight properties in the Permian Basin in Texas and New Mexico. Its unconventional production from the Permian Basin rose 50% year over year to 421,000 barrels per day in the second quarter.

Overall, the reduction in oil supplies from Saudi Arabia is expected to offer a huge boost to oil prices. Consequently, the higher prices would help Chevron stock price and financial numbers in the coming days.

Trusted & Regulated Stock & CFD Brokers

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.