Chevron Corporation (NYSE: CVX) is witnessing a good omen which is clearly reflecting on CVX stock price. Multiple geopolitical instances, actions on global level and their reactions affecting the markets. The crude oil market remained no exception and the American multinational oil corporation experienced the consequences.
Chevron Stock Price Facing Geopolitical Impact
According to the reports, the Biden administration authorized Chevron a six month license allowing it to work with Venezuela. Through this, the oil company got the opportunity to expand its existing operations via ongoing projects in the earlier sanctioned country. Both the countries would get benefitted after the step along with Chevron.
Chevron (CVX) has joint ventures with the state owned company PDVSA in Venezuela. Following the permission, the oil company can now expand operations through its ventures: Petroboscan and Petropiar. This will help the country to restore its lost oil production affected since the US sanctions. It will also let the recovery of Chevron owed debt and increase bring more employment in the region. While the United States would be getting the prized heavy crude oil from the country.
The move from the US government came in the wake of efforts to encourage the political talks between the existing Venezuelan government’s President Nicholas Maduro and the opposition leaders. This instance was enough to keep the aspiration and optimism within the company high and so expectedly reflect on Chevron (CVX) stock price.
CVX Stock Price Chart Movement
CVX stock price is hovering around its all time high of approx 190 USD attained in November 2022. At the press time, the stock is trading at 181.03 USD. The stock price could witness a breakout from here while continuing its movement. CVX stock is up by more than 55% in the year. This is evidently more than any index attained during the similar time frame.
CVX stock, from the last 2 months, continued to trade in uptrend, forming higher highs and surpassing immediate barriers. After that, in the previous week, CVX hit a yearly high of $190 with strong volume addition of 376k. Afterward, the price retraces from the top, stays near the support of $181 and sustains well. The price is now consolidating and taking support at its 50 day EMA, conveying that the trend is positive and bulls are maintaining the grips.
The immediate support is at $175, whereas the resistance is at its recent high of $190, which is to be retested further in the near term.
Considering the condition following the recent easing of American sanctions over Venezuela, Chevron is poised to take advantage of the situation. Many competitors are in the queue to have the access of upcoming cargo in the form of Venezuelan crude in the country. This is surely going to help the oil company make a good revenue and profit. The impressive numbers are likely to reflect over the stock price.
Chevron is known to be the largest and successful oil company across the world. It’s the seventh largest in the world and second largest in the United States. The company with a market capitalization of over 350 billion USD had its Q3 earnings release in September 2022.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/05/is-chevron-cvx-stock-preparing-for-a-breakout/