Integrated stocks performance
Since January 20, 2016, integrated energy stocks have been recuperating from the falls they experienced in 2015. Chevron (CVX) has risen 49% during this time. The rise has been due to spikes in oil prices due to the efforts of oil producers to support prices along with global supply outages and reductions.
Oil prices saw weakness in August 2016, but since September 20, they’ve risen 22%. Chevron has risen 20% in the same period. Over the past few days, oil prices have spiked on the news of a production cut by OPEC (Organization of the Petroleum Exporting Countries), also supported by Russia, a non-OPEC country. For more information, read How Non-OPEC Production Cuts Could Drive Oil Rally.
CVX’s peers Statoil (STO), Petrobras (PBR), and PetroChina (PTR) have risen 23%, 19%, and 19%, respectively, since September 20, 2016. Eni (E) and Suncor Energy (SU) have risen 14% and 29%, respectively, in the same period. If you’re looking for global stock exposure, you can consider the Vanguard Total World Stock ETF (VT). The ETF has 56% exposure to North American stocks.
Chevron’s stock performance
Last year, Chevron’s stock fell, led by plunging oil prices. Chevron’s stock had a weak opening to 2016, when it traded below its 50-day and 200-day moving averages. Chevron’s stock’s downward movement stopped at the end of January, after which it started rising due to firming oil prices. During that time, Chevron’s stock, amid volatility, crossed over its 50-day and 200-day moving averages.
However, in 3Q16, CVX remained volatile, hovering around its 50-day moving average. So far in 4Q16, Chevron has crossed over both its moving averages, spurred by crude oil’s rally. For more on this, read Crude Oil Makes New 2016 Highs: Following Oil-Weighted Stocks.
Move on to the next article to find out why most analysts have given positive recommendations on Chevron.