Oil Prices May Rise Due to Falling Inventories Amid U.S.-Iran Tensions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Source: seekingalpha
- Declining Inventory Trend: As of May 22, U.S. commercial crude oil inventories fell by 3.3 million barrels to 441.7 million barrels, approximately 2% below the five-year average, indicating a worsening supply-demand imbalance that could lead to rising oil prices.
- Increased Market Pressure: Chevron CEO Mike Wirth noted that the market's buffer capacity is steadily diminishing, and he expects more direct upward pressure on oil prices in the coming weeks, particularly in June and July.
- Risk of Historical Lows: Exxon executive Neil Chapman warned that inventories are approaching unprecedented low levels, and if this trend continues, Brent crude prices could surge to $150 to $160 per barrel in the coming weeks, with demand destruction likely bringing the market back into balance.
- Geopolitical Impact: Despite Brent futures rising over 50% year-to-date, prices have declined about 18% in the past month due to the fragile ceasefire in the Middle East, highlighting the significant influence of geopolitical factors on oil prices.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 183.030
Low
158.00
Averages
176.95
High
206.00
Current: 183.030
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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