Global oil supplies are tightening because the Strait of Hormuz closure is cutting off 20% of world supply, inventories are being drawn down, and supply outages are emerging in Europe and Asia, which will create upside price pressure and increased volatility in oil markets.
Chevron's portfolio resilience, strong U.S. production, record refinery throughput, and low Middle East exposure (<5% of production) make it less impacted by geopolitical disruptions and deliver strong earnings, supporting a positive view on the stock.
U.S. gasoline and diesel inventories are at very low levels (diesel at lowest since 2003), refineries are running near maximum utilization, and seasonal demand is about to rise. This combination creates risk of shortages and upward pressure on prices for both gasoline and diesel in the United States.
U.S. gasoline and diesel inventories are at very low levels (diesel at lowest since 2003), refineries are running near maximum utilization, and seasonal demand is about to rise. This combination creates risk of shortages and upward pressure on prices for both gasoline and diesel in the United States.