Chevron (CVX) was having a rough session Wednesday following its profit warning after the prior close, but investors in the rest of the sector didn't appear particularly overwrought.
That's probably because Chevron's warning had some Chevron-specific elements, but also because there's little good reason to think panic should ensue. While there's room for caution about the petroleum industry, if you're just sitting on the outside wondering, don't interpret the Chevron news as an alarm bell on the whole of Big Oil's future as a profit center.
Late Tuesday, Chevron said it expected third-quarter earnings to be "substantially lower" than the second quarter, when it made $3.56 a share. What happened? Production and refining had some stumbles during the last couple of months, with Hurricane Isaac in the Gulf of Mexico, a fire at the company's Richmond, Calif., refinery, which will probably keep the crude unit closed for the rest of the year, and other maintenance needs. Oil sellingRead More »from No Panic for Big Oil After Chevron’s Warning