Chevron Stock Rises Friday As Oil Market Reacts To Venezuela Uncertainty

Chevron Corp (NYSE:CVX) shares are marginally higher on Friday as the company navigates a complex landscape in the oil sector, following comments from Treasury Secretary Scott Bessent that major oil companies are hesitant to invest in Venezuela.

• Chevron stock is trading near recent highs. Where are CVX shares going?

Is Chevron’s Future Tied To Venezuela’s Uncertainty?

Bessent stated during a speech that large oil companies, including Chevron, are “not interested” in investing in Venezuela, marking a significant strategic shift for corporate boards. He emphasized that while independent oil companies show eagerness, the majors are moving slowly in their decision-making processes.

Bessent’s remarks come ahead of a potential meeting with leaders of major U.S. oil companies, including Chevron, as President Trump suggested that these companies plan to invest nearly $100 billion in Venezuela. However, the companies are demanding “serious guarantees” from the administration before committing to any investments.

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Key Technical Indicators Favor Chevron’s Momentum

Chevron is currently trading 6.8% above its 200-day simple moving average (SMA) and 5.4% above its 20-day SMA, indicating a strong upward trend in the longer term. Shares have increased 4.74% over the past 12 months and are positioned closer to their 52-week highs than lows.

The RSI is at 60.35, indicating neutral momentum, while the MACD is above its signal line, suggesting bullish conditions. The combination of a neutral RSI and a bullish MACD suggests mixed momentum for the stock.

• Key Resistance: $161.00
• Key Support: $147.50

Earnings & Analyst Outlook

Investors are looking ahead to the next earnings report on January 30.

• EPS Estimate: $1.53 (Down from $2.06 YoY)
• Revenue Estimate: $50.66 billion (Down from $52.23 billion YoY)
• Valuation: P/E of 22.4x (Indicates fair valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $172.26. Recent analyst moves include:

• Piper Sandler: Overweight (Lowered Target to $174.00)
• Freedom Capital Markets: Upgraded to Sell (Target $165.00)
• Citigroup: Buy (Lowered Target to $179.00)

Valuation Insight: While the stock trades at a fair P/E multiple, the strong consensus and 26% expected earnings decline suggest analysts view this growth as justification for the 7% upside to analyst targets.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Chevron, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Neutral (Score: 34.66/100) — Stock is currently underperforming relative to the market.
• Value: Strong (Score: 81.33/100) — Indicates fair valuation relative to peers.

The Verdict: Chevron Corporation’s Benzinga Edge signal reveals a mixed outlook. While the strong Value score suggests that the stock is fairly valued, the low Momentum score indicates that it may not be keeping pace with broader market trends.

Top ETF Exposure

• iShares Core High Dividend ETF (NYSE:HDV): 6.22% Weight
• First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL): 8.12% Weight
• Invesco BuyBack Achievers ETF (NASDAQ:PKW): 4.87% Weight

Significance: Because CVX carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

CVX Price Action: Chevron shares were up 0.82% at $160.55 at the time of publication on Friday, according to Benzinga Pro data.

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