Houston, March 5, 2026, 14:49 (CST)
- Chevron shares climbed in the afternoon as crude prices pushed higher
- Oil prices finished the session with strong gains, after the Iran conflict threw supply lines and shipping into disarray.
- Analysts pointed to tight spare capacity across LNG markets, with ripples from the Qatar outages still being felt.
Chevron Corp shares climbed Thursday, tracking another rally in oil prices that drew buyers toward major energy stocks. The stock traded at $189.28, up $3.25, or 1.7%, in the afternoon.
Crude prices surged, with traders factoring in heightened supply and transport risks tied to the U.S.-Israeli conflict involving Iran. Brent jumped $4.01, or 4.93%, to settle at $85.41 per barrel. U.S. West Texas Intermediate shot up $6.35, or 8.51%, closing at $81.01—a level not seen since July 2024, according to Reuters. “There is no movement in the Strait of Hormuz so prices will grind higher,” said John Kilduff, partner at Again Capital. Dennis Kissler at BOK Financial flagged crude as “very sensitive” to any shutdown at the strait. Reuters
Pressure isn’t confined to crude—freight, gas, and fuels are also feeling the heat, sending energy stocks on a bumpy ride. According to a Reuters analysis, rates for a very large crude carrier running Middle East to China have soared, leaping from roughly $120,000 daily last week to north of $450,000 a day since fighting broke out. The logistics crunch is getting sharper. Reuters
Exxon Mobil ended roughly flat. Shares of ConocoPhillips added about 0.9%, while Occidental Petroleum edged down close to 0.6%. Other key oil names saw mixed moves during the session.
Natural gas got pulled into the mix too. Qatar’s stoppage of liquefied natural gas production—and its force majeure call, the escape hatch for suppliers when outside factors stall shipments—has analysts pointing out the lack of spare capacity. “There is no massive capacity on the sidelines,” said Alex Munton, director of global gas and LNG with Rapidan Energy Group. Saul Kavonic at MST Marquee added that Australia has “almost no scope” to ramp up additional LNG exports in the near term. Reuters
Chevron tends to see stronger oil and gas production cash flows when crude prices climb, driving its earnings. Still, its refinery and fuel marketing operations can get squeezed if crude goes up quicker than prices at the pump or for finished products.
Chevron is getting hit closer to home. Iranian attacks and heightened security led to shutdowns at Israeli gas fields Leviathan and Tamar—both run by Chevron—earlier this week, according to Reuters. Reuters
Shares jumped Thursday, reversing course after energy stocks seesawed in the previous session. Earlier, a report from Barron’s said oil’s rally lost steam when news broke that Iranian intelligence officials had reached out to U.S. contacts to discuss potential talks. Barron’s
Downside risks are front and center. Earlier this week, a Reuters columnist pointed out that markets continue to expect only a short-lived shock, though a drawn-out shipping mess would push producers to cut output as storage gets maxed out. Moves like de-escalation, a tap of strategic reserves, or rerouted exports—all could put a lid on crude and pull energy stocks down. Reuters
Traders are eyeing the resumption of shipping via the Strait of Hormuz and monitoring if Gulf producers can maintain flows using other channels. Chevron faces its own immediate challenge: crude prices need to stay high enough to support upstream profits but not so high that they cut into demand at the pump.
