NEW YORK, December 29, 2025, 13:42 ET — Regular session
- Chevron shares rose about 0.6% in early afternoon trading, bucking a softer broader market.
- Frontera Energy said it signed a two-year prepayment agreement worth up to $120 million to supply crude to Chevron Products Company.
- A Ukraine-linked disruption to Kazakhstan’s main export route kept attention on supply risks tied to the Chevron-led Tengiz field, a Reuters report said.
Chevron shares rose on Monday as oil prices jumped and traders weighed fresh supply news after Frontera Energy said it signed a two-year crude agreement with a Chevron unit worth up to $120 million.
The developments matter because energy stocks are being pulled between day-to-day geopolitical supply shocks and a growing debate over whether 2026 brings excess oil that could cap prices and margins.
For majors such as Chevron, changes in crude pricing assumptions feed straight into cash-flow expectations that underpin dividends and buybacks, leaving the sector sensitive to each shift in the supply-demand narrative.
Chevron was up 0.6% at $150.95 in early afternoon New York trading. Exxon Mobil rose 1.3% and ConocoPhillips gained 0.5%, while the SPDR S&P 500 ETF was down about 0.4%.
Frontera said its Colombian unit will receive an initial $80 million advance under the prepayment and commercial agreement and supply a portion of its crude output to Chevron Products Company. It said it could seek an additional $40 million advance for up to six months, and that the new agreement replaces an existing arrangement set to expire at the end of January 2026.
A prepayment structure is effectively financing: the buyer pays cash upfront and takes delivery of oil over time, while the producer uses the advance for working capital and locks in a customer.
Supply risks also resurfaced in Kazakhstan, where an industry source told Reuters output in December 1–28 fell about 6% from November’s average, led by a 10% drop at the Chevron-led Tengiz field to roughly 719,800 barrels per day. The source said Kazakhstan’s CPC Blend exports via the Caspian Pipeline Consortium terminal were down 19% so far this month after a Nov. 29 drone attack damaged loading infrastructure.
Chevron also said its South N’dola platform in Angola achieved first oil in December, marking a milestone for its operations in the country.
Crude prices climbed more than $1 a barrel on Monday as tensions flared in Yemen and Russia said it would review its stance on peace talks, Reuters reported. Brent was up about 2% near $61.86 and U.S. West Texas Intermediate rose about 2.3% to $58.03.
“$60 a barrel was the soft floor for Brent,” UBS analyst Giovanni Staunovo said, adding that prices were expected to recover slightly in 2026 as non-OPEC+ supply growth likely stalls in the middle of the year. Reuters
Traders were also waiting for U.S. stockpile data for the week ended Dec. 19 that had been expected on Monday after a holiday delay, but the report was postponed without a new publication time, Reuters said. A Reuters poll showed analysts expected crude inventories to fall, while distillate and gasoline stocks were likely to rise.
Looking ahead, investors are watching whether inventories start building as supply growth accelerates. The International Energy Agency forecasts supply will exceed demand in 2026 by 3.85 million barrels per day, while OPEC analysts have projected a more balanced market — a split likely to keep oil-linked shares, including Chevron, trading on each new data point.
