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How Chevron Stock Is Trending in the Weaker Market

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Mar. 27 2018, Published 1:18 p.m. ET

Chevron stock performance compared to SPY

Chevron (CVX) stock has fallen 10.9% since January 2, underperforming the market indicator, the SPDR S&P 500 ETF (SPY). The ETF has fallen 1.9%. CVX’s peer Royal Dutch Shell (RDS.A) has fallen 8.3%. ExxonMobil (XOM) and BP (BP) have fallen by 13.6% and 7.9%, respectively, in the quarter so far.

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WTI performance in 1Q18

WTI prices have been quite volatile in 1Q18 so far. WTI rose 7.2% to $65 per barrel between January 2 and January 31. It fell 6.3% to $62 per barrel between February 2 and February 28. WTI prices have risen 5.4% in March so far. Overall, WTI prices have risen 6.5% in the quarter so far.

Oil prices rose earlier in the quarter, likely due to the expectation of an extension of production cuts by major oil producing nations. Then came an expected rise in US oil production and inventories, which likely pressured oil prices. However, now oil prices have started recovering again. For more on the recent recovery, see Will the Recovery in Oil Prices Last?

Chevron stock, the broader market, and oil prices in 1Q18

Let’s have a look at monthly performance for Chevron stock, the broader market, and oil prices in 1Q18.

In January, WTI prices rose 7.2%, the broader market (SPY) rose 4.9%, and Chevron stock fell 1.7%. Contrarily, in February, oil prices slumped 6.3%, SPY fell 3.5%, and Chevron stock declined 10.9%. Again, in March so far, oil prices have risen 5.4%, SPY has decreased 1.5%, and Chevron has risen 1.5%.

These numbers imply that Chevron stock has frequently moved in line with the broader market and oil prices. But the steep decline in the stock in February has led to an overall fall in Chevron stock in 1Q18 so far.

In the next part of this series, we’ll see what Chevron’s moving averages suggest.

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