Chevron stock (NYSE:CVX) rose today as oil prices rose. The business also said that it sees an opportunity to grow liquefied natural gas (LNG) sales in Europe since the conflict in Ukraine has driven energy commodity prices skyrocketing. The oil and gas shares finished the day up 4.9%.
What Happened to Chevron Stock?
The consumer price index data came in hotter than predicted today, with September inflation up 0.4% from August and 8.2% year on year. Stocks immediately fell on the news, as predicted, since strong inflation increases the likelihood that interest rates would keep rising as planned by the Federal Reserve rapidly.
However, by late morning, shares had immediately recovered and were rising by the afternoon. The reason for the reversal was unclear, although investors may have thought markets were oversold, with indices reaching new lows in the morning and the S&P 500 at a two-year low.
Oil prices also fell on the news but recovered later in the day and were up 2% in afternoon trade. This boosted the energy industry, particularly Chevron stock (NYSE:CVX). The corporation benefits from increasing oil prices in various ways as a diversified oil major.
Another news that seemed to be pushing up the stock (NYSE:CVX) was a Reuters story that higher LNG prices in Europe might draw Chevron’s shipments this winter. It also said that the company’s Permian Basin output is expected to expand 15% this year, indicating that higher pricing and more production would help drive higher earnings.
So, what now?
Today’s stock market and oil market movements were perplexing. Chevron, like the rest of the energy industry, is susceptible to a worldwide recession, resulting in a drop in oil prices and a demand reduction.
Nonetheless, given current pricing and Europe’s natural gas supply shock, Chevron is poised to announce another excellent quarter later this month. Analysts predict profits per share to climb from $2.96 to $4.89 on a 46% increase in sales to $59.1 billion when the business releases its third-quarter results later this month.
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Author Okoro Chinedu 
