Overview
- Chevron shares fell about 4.6% intraday as oil prices dipped a few percentage points below $100 a barrel.
- The price move was linked to President Trump's comment hinting that U.S. attacks on Iran could end in the next couple of weeks.
- The Strait of Hormuz remains almost entirely closed to commercial energy traffic, so the underlying supply shock persists.
- That waterway normally carries about 34% of global crude trade and 20% of liquefied natural gas, which is difficult to replace quickly.
- Integrated producers like Chevron can benefit from higher crude and wider crack spreads, the gap between fuel prices and crude costs, while the chokepoint stays shut.