CVX Stock Breaks Its Falling Streak; Rises By Almost 1%

Oil market was down with both Western Texas Intermediary (WTI) and Brent crude suffering a loss today. Chevron Corp (NYSE: CVX), an American oil and gas corporation, felt the effect with CVX stock falling by over 2% on Wednesday. However, the company shares gained 0.78% yesterday but again, began falling in the pre-market session. It is currently trading at a market price of $153.81.

Chevron Planning Trapial Block Development

The company was planning an over $500 Million investment in Argentina for Trapial block development containing Vaca Muerta shale basin. Reports show several organizations have increased the output in the region. According to Reuters, Chevron’s spending plan may begin this month itself.

Chevron is also working on its carbon reduction plans. The oil corporation plans to reach net zero Scope 1 and Scope 2 operations by 2050. The company reduced greenhouse emissions from 100K million cubic feet (mmcf) to 60K mmcf according to Evaluate Energy, an oil and gas information provider.

The Financial Times, a British daily newspaper, reported ExxonMobil (NYSE: XOM) and Chevron Corp shareholders have rejected their respective companies’ carbon support proposals. Companies in the oil and gas sector resist setting targets as it can hamper the production, and eventually their revenue. Only 11% of ExxonMobil shareholders favored setting Carbon-neutrality targets.

CVX Stock Price Performance

CVX stock has remained volatile with the price taking support at higher levels as it proceeded. The price took support near $132 in July 2022, at $140 in September and at $149 in March 2023. Major surge came during September and November during September and November 2022 when company shares jumped over 30%.

While CVX stock was falling, the moving average convergence divergence (MACD) was moving up with buyers’ dominance declining in the market. Aroon up has crossed above Aroon down, supporting a bullish scenario. Klinger oscillator is in sync with the current price trend.

A shift to clean energy is both a boon and a curse to oil and gas companies. On one hand, their operations might be hampered, on the other, a transition to renewable resources is the business of the future. The United States government has pledged to go carbon neutral by 2050. A transition to clean energy may help uplift Chevron Corp in the long run.

Pampa Energia (NYSE: PAM), largest independent energy company in Argentina, is looking to pour $500 Million into a Bueno Aires wind farm. Global Data plc (LON: DATA), a data analytics company, reported that wind energy generated 9% of the nation’s power in 2022.

However, a few companies are still relying on traditional methods. NexTier Oilfield Solutions (NYSE: NEX), a wells completion company, announced a merger with land drilling and pressure pumping company, Patterson UTI. The merger would result in a new oilfield entity potentially worth over $5 Billion.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.