Appears last week that jobless reports were better than expected, a number for 150000 jobs would be indicative of a stronger economy and this may stimulate a rate hike. The jobs report came in at 271000, almost twice as much. This makes the dollar stronger and oil cheaper. Saudi's will not decrease supply..
The dow appears to be at the resistance point of ~18000 and turning...I have a hard time seeing anything beyond a world war that could cause the price of oil to go higher and Chevron to make much money. I would consider shorting or buying after this things comes down near 80?
Interesting read: The Chevron Big Foot project failure, crude oil prices have also weighed in on the company. The second quarter of the fiscal year (2QFY15) saw one of its worst quarters as it reported a monumental year-over-year (YoY) decline in earnings. Crude oil continues to remain at low levels.
During early trading on Tuesday, the US benchmark for crude oil, West Texas Intermediate (WTI) was down 2.39% at $42.93 per barrel, while the global benchmark for crude oil, Brent Crude was down 1.87% at $46.65 per barrel.
Chevron will really have to pick up its pace and look for ways to rejuvenate investor confidence. Chevron will report its earnings for the third quarter of fiscal year 2015 on Friday. If the company is able to report robust earnings and beat consensus guidance, it might be able to improve investor skepticism.
Chevron has also indicated that its Gorgon project will come online by the end of this. The company on previous occasions has also given and missed several guidelines. However, the situation is quite grim for the oil major, and the management should work toward achieving this goal.
Looking at the current circumstances, a recovery in crude oil is highly unlikely. Demand remains week, while supply is likely to aggregate once Iranian production comes up. More divestitures, along with cost-cutting strategies might be expected from its upcoming earnings disclosure.
Several things will be moving the market this week.
First the Fed decision on Wednesday...if they raise interests rates or speak hawkishly the market should be dragged lower. Expectation is of no change so at best the market would tread water.
Second Globally Oil supplies are gushing and Dow Transports sank over 200 points today . Economically it appears we are slowing. High supply and weakening demand. Iran and the oil cartels are competing to supply their only resource....at lower and lower costs
Chevron reports Friday, many people are betting against Chevron or the oil industry for quite awhile. Who would want to be a buyer? The stock bounce recently was from the large amount of shorts that got in at 125 that rose with the market. Chevron (CVX) Stock now below the 200 moving day average, and just crossed below 100 moving day average. Dismal reports and crossing below the 50 may take the stock to new lows. I have made plenty shorting this company over the year or buying the bounces. I'd be out of Chevron be in a different company with more potential.