Crude oil prices are up 4% and back trading near $100 a barrel as the two-week-old Iran ceasefire is set to expire on April 22.
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Brent crude oil, the international standard, is trading at $98 a barrel in afternoon trading on April 21 as planned negotiations aimed at achieving a lasting peace deal between the U.S. and Iran appears to be faltering with the clock ticking on the temporary ceasefire that’s in place.
At the same time, U.S. President Donald Trump has given conflicting statements, saying both that he expects a “great deal with Iran” and also that he is ready to resume military strikes if negotiations fail. The president has also said that he doesn’t want to extend the current ceasefire beyond April 22.
The rising crude prices have the stocks of leading oil producers such as Chevron (CVX), Occidental Petroleum (OXY) and Shell (SHEL) trending higher.
Gas Prices Rise for Americans
The Strait of Hormuz, where 20% of the world’s crude oil typically flows, remains largely shut amid a U.S. blockade and Iran’s threats of retaliation. Prices for gasoline at the pumps remain above $4 per gallon in many parts of America, straining the finances of consumers as a result.
However, in a media interview on April 21, President Trump dismissed rising oil prices, calling them “peanuts” and saying that he is surprised prices aren’t much higher. “If you would have told me that oil is at 90 as opposed to 200, I would be frankly surprised,” he said.
Is CVX Stock a Buy?
Chevron’s stock has a consensus Strong Buy rating among 22 Wall Street analysts. That rating is based on 18 Buy and four Hold recommendations issued in the last three months. The average CVX price target of $210.95 implies 14% upside from current levels.
