U.S. Captures Maduro, Venezuela's Oil Worth More Than Global Economies Except U.S. and China
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Market Focus: Following the U.S. capture of former Venezuelan President Maduro, investors are closely monitoring the energy sector, particularly as Venezuela's 303 billion barrels of oil reserves position it as one of the world's most coveted oil producers, potentially impacting OPEC dynamics.
- Chevron's Strong Performance: Chevron's stock has risen 2% since Maduro's capture, reflecting its strategic advantage in the Latin American market, especially after competitors exited, with existing infrastructure and operations giving Chevron a head start in potential output increases.
- Oil Services Opportunities: SLB (formerly Schlumberger) is seen as the leading contender for the first service contracts in Venezuela due to its maintained presence post-nationalization, indicating potential opportunities in the oil services sector in the country.
- Refining Sector Attention: Given that Venezuelan oil requires extensive refining for export, investors should consider refining companies like Marathon Petroleum, Phillips 66, and Valero Energy, as their operations may yield long-term benefits amid high costs and strict environmental standards.
Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 177.50 USD with a low forecast of 158.00 USD and a high forecast of 204.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
13 Buy
3 Hold
0 Sell
Strong Buy
Current: 166.160
Low
158.00
Averages
177.50
High
204.00
Current: 166.160
Low
158.00
Averages
177.50
High
204.00
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.
