The year since the presidential elections can be seen as a favorable on for the energy sector giants, such as Chevron Corporation (NYSE:CVX). Energy stocks started to rise due to the favorable policies announced by Donald Trump as he won the elections. The boom further strengthened upon the agreement of Oil Producing Exporting Countries (OPEC) to reduce the oil supply next year. This move led to a rise in oil prices in double digits. Other non-OPEC members have also agreed to reduce their oil supplies next year.
Upon analyzing the situation, analyst Neil Beveridge of Bernstein Research has written that the firm expects oil prices to go up to $60 per barrel in the near future. “While Brent has already recovered back to US$55/bbl, we expect oil could trade up to US$60/bbl in the near term.” The prices are seen rising today as well and have crossed the $56 mark. The price for WTI Crude stands at $54.26 as of 3:34 AM ET after rising 5.36%. The per barrel prices for Brent Crude have registered an increase of 4.84% till this time today and stands at $56.96 respectively.
The statement of Bernstein research if proves to be correct like the one made by Goldman Sachs previously would result in massive benefits for energy giants, such as Chevron. Their revenues will register an increase in the next quarter which will improve their financial position massively. They will further be benefitted in the stock market. Their value of stocks which has been rising since last month will go to new heights. They will be able to beat their year-high prices multiple times. The investor confidence is increasing on the energy stocks as well as on OPEC agreement.