XOM, CVX, OXY: Crude Oil Prices Fall to Six-Month Low, Pressuring Energy Stocks

Oil prices have fallen to their lowest level in six months, with Brent crude, the international standard, dropping below $70 a barrel and putting pressure on energy stocks.

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Shares of leading U.S. oil producers Exxon Mobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY) are each down about 2% on March 5, continuing a downward trend that has been ongoing for most of this year as crude prices continue to weaken. West Texas Intermediate (WTI) crude oil, the U.S. standard, is trading at $66 per barrel, its lowest level since last September.

The selloff in crude oil has accelerated as the prospect of a global trade war rises and threatens to hurt demand, as well as plans by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to begin unwinding output cuts starting in April. Data showing a bigger-than-expected weekly rise in domestic U.S. crude inventories is also pushing oil prices lower.

Uncertain Outlook

Brent and WTI crude oil are each trading at their lowest prices since Sept. 10 of last year. Many analysts expect crude prices and energy stocks to move even lower over the near-term as a slowing U.S. economy hurts global demand just as OPEC+ increases production, potentially swamping the market with oil.

OPEC+ has announced plans to unwind production curbs in April, which is also weighing on crude prices. At the same time, U.S. President Donald Trump continues to call for a boost in U.S. crude production. However, data from the U.S. Energy Information Administration shows that crude oil inventories in America rose by 3.6 million barrels in the week ended Feb. 28, raising the country’s crude stockpile.

CVX stock is up 5% this year.

Is CVX Stock a Buy?

Chevron’s stock has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 12 Buy and three Hold recommendations assigned in the past three months. The average CVX price target of $176.47 implies 17.06% upside from current levels.

Read more analyst ratings on CVX stock