PXD Stock Got Less Volatile Last Year, Loses About 2% Yesterday

• Pioneer Natural Resources Company reduced their Q4 target recently.
• Hydrocarbon industry may face challenges due to macroeconomic tensions.
• The company stock was trading at $229.83 at publication time.

A major conflict is arising among the companies in the oil and gas industry considering reduction in natural reserves, impact of Russia Ukraine war and more. Pioneer Natural Resources Company (NYSE: PXD), a hydrocarbon exploration company, was seeing a downturn recently. Where on one hand, the organization announced that they will not meet their production target in Quarter 4 2022, PXD stock plunged by almost 2% on January 30, 2023.

Current State of Hydrocarbon Sector

The company said that they lowered their anticipated target to 351,000 bopd and 662,000 boe/d — down from 355,000 bopd and 670,000 boe/d previously. The news came after the winter storm Elliott turned into a bomb cyclone. The event sent devastating effects across the United States.

Aviation sector too felt its toll as the calamity caused cancellation of over 2,000 flights. According to The New York Post, it left over 700K without power and at least 17 dead. Apart from this, the oil and gas industry is feeling economical tremors from the Russia-Ukraine conflict too.

The European Union (EU) is heavily dependent on Russia for oil and gas. The war led some major nations to bar oil exports from the country. Joe Biden signed an executive order, the United Kingdom followed and banned all hydrocarbon imports, considering that the nation increased barrel prices from $76 in January 2023 to $110 in March 2023. According to the data, Russia produced 10.5 Million barrels of liquid fuel products in 2020.

A report published by BP (NYSE: BP), a British oil and gas company, highlights their outlook on the energy sector. According to the BP Energy Outlook 2023, Russian invasion of Ukraine has raised the concerns associated with energy trilemma — security, affordability and sustainability.

It also addresses a global shift towards renewable energy as fossil fuels are declining. Moreover, oil demand is plunging considering the increased focus of companies on the electric vehicle (EV) market. Companies like Tesla (NASDAQ: TSLA), Nikola (NASDAQ: NKLA), Chargepoint Holdings (NYSE: CHPT) and more are providing automobiles and necessary infrastructure to fuel this market.

PXD Stock Price Analysis

PXD stock gained almost 60% during the first half of 2022 before falling in June 2022 around 25% in the month. Disjoint channel shows an inverted megaphone like structure, highlighting lowered volatility in the remaining half of the year. 

Anchored VWAP shows the price is around its average range with RSI supporting an oversold position for the company shares. Fib levels point toward a potential increase in value where it can go over $250 in case of breakthrough. Currently, the price holds a support at $229 and a resistance of $243.

Geopolitical and macroeconomic tensions may hinder the growth of companies in the sector as the pressure to secure supply in the short term while making a shift towards clean energy in the long run rises.

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.