Bernstein raises Chevron target on crude backdrop

What happened: Bernstein raised its price target on Chevron (CVX) to $216 on March 22, citing a stronger crude backdrop. BMO Capital followed suit, lifting its target to $205 on April 7. CVX shares surged nearly 11% in March, boosted by rising oil prices and strategic deals. However, they dipped 4.6% on April 11 as oil prices fell below $100.

Market impact: The energy sector, particularly integrated majors like Chevron, benefits from higher oil prices and crack spreads. The geopolitical situation, including the conflict in the Middle East, can drive oil price volatility, affecting energy stocks. chevron's shares are also influenced by specific events like the closure of the Strait of Hormuz.

What to watch next: Chevron's Q1 earnings, scheduled for April 29, will provide insights into the company's performance amidst volatile oil prices. Additionally, any developments in the Middle East conflict and potential impacts on oil supply chains will be crucial to monitor.