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Chevron, Exxon Mobil falter as oil prices fall to 15-month low


letter V (CVX) And ExxonMobil (XOM) fell along with other energy stocks on Wednesday when concerns about the collapse of SVB Financial flooded the oil market. U.S. oil prices fell to their lowest levels since late 2021. CVX stock led early Wednesday’s decline among Dow Jones Industrials stocks.




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US crude oil futures remained below $70 per barrel on Wednesday, falling to levels not seen since December 2021. West Texas Intermediate crude fell to $67.04 per barrel, marking a level down 13% since the end of 2022. Meanwhile, Brent crude futures trade around $76 a barrel, near December 2022 levels.

The drop in oil prices comes as the collapse of SVB Financial last weekend and Signature Bank of New York on Sunday stoked fears other financial institutions could collapse. However, recent oil demand forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) could help keep prices down.

Russia’s invasion of Ukraine in February 2022 sent oil prices soaring. Futures are down year-end, trading 43% below their June high on Wednesday.

Shares of Chevron fell 4.8% on Wednesday in market trade. Exxon Mobil dumped 5.6%. The seller also tore into oilfield service companies, sending Halliburton (HAL), SLB (SLB) And Baker Hughes (BKR) to a loss in the range of 5%-9%.

Coterra Energy (CTRA) put a loss of 8% on Wednesday while Marathon Oil (MRO) sale 10%. energy stocks APA (APA) decreased by 9%.

Oil and OPEC Forecast

On Tuesday, OPEC left its global oil demand growth forecast for 2023 unchanged. The oil group dented optimism around China’s reopening economy with concerns about the United States and Europe. .

In its monthly market report, OPEC expects oil demand to grow by 2.3 million bpd in 2023 to 101.9 million bpd. Total global oil demand will reach 99.8 million barrels in 2022. OPEC also raised its forecast for oil demand growth in China in 2023.

On the supply side, Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ will follow closely agreement to cut production in October until the end of 2023.

Meanwhile, the International Energy Agency repeated its bullish outlook on oil demand, pointing to a strong uptick in air travel and the reopening of China’s economy following the reopening of China’s economy. epidemic.

Chevron stock, other stocks react to oil price

Airlines and shipping stocks typically rise when oil prices fall, because the drop allows companies to lock in the hedge against cheaper fuel. On Wednesday, however, shipping and airline stocks overall fell. Airlines fell after some airlines let mixed guide update Tuesday.

Meanwhile, energy stocks showed some resilience ahead of early marketing on Wednesday, with Chevron, Exxon Mobil and others suffering losses of about 2%. Started opening, selling increased and losses deepened.

Shares of Chevron are now down nearly 3% in March and are on track for a fourth straight month of declines. Exxon shows a 6% loss, heading for a second monthly drop.

diamond energy (FANG) And random (OXY) decreased by about 7%. Devonian energy (DVN) decreased by 8.7%.

Wednesday afternoon, except Bank of the First Republic (FRC), energy stocks Coterra Energy, Marathon Oil, Halliburton, Devon Energy, APA and SLB became the worst performers on the S&P 500.

ConocoPhillips (police) fell 6.4% on Wednesday. On Monday, the Biden administration approved the Willow oil drilling project in the Alaskan Arctic.

This gives ConocoPhillips the green light to begin construction on its approximately $7 billion project at the Alaska National Petroleum Reserve. COP expects the project to produce about 180,000 barrels of oil per day at its peak — equivalent to about 40% of Alaska’s current crude oil production.

Environmental groups have criticized Biden for the decision, saying he is backing away from his climate pledge.

Please follow Kit Norton on Twitter @KitNorton for more insurance.

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