Chevron profit drops on weaker refining margins, storm hit

Chevron Corp (NYSE:CVX)’s UP 1.51% AT 83.88

Chevron Corp (NYSE:CVX)’s first-quarter profit fell 29% compared with the same period a year ago as gains from oil and gas prices were undercut by weaker refining margins, production losses and the impact of an asset sale that benefited results last year.

Oil companies are generally enjoying a recovery in energy prices, up at least a third this year, after the pandemic hammered demand at the start of 2020. Chevron and its peers slashed spending, paving the way for several firms to post sharply better results.

But as European rivals topped forecasts, Chevron’s earnings declined on winter storm production losses, weaker margins and the absence of asset and tax items that benefited year-ago profit.

“Results were down from a year ago due in part to ongoing downstream margin and volume effects resulting from the pandemic and the impacts of winter storm Uri,” said Michael Wirth, Chevron’s chief executive officer.

On technical fronts Chevron Corp (NYSE:CVX)’s RSI stood at 66.64 and currently stock is trading Above all Moving Averages. So, BUY position can be taken with following target and stoploss.

TRADE SIGNAL -: Chevron Corp (NYSE:CVX)’s – BUY: 106.85, TARGET: 107.56, STOP LOSS: 105.78

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