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Oil Surge Recasts Chevron’s Prospects as Brent Tops $110

Peace talks stalemate keeps a near-term premium in crude.

Overview

  • Brent crude is trading above $110 after supply snarls tied to the Iran conflict kept flows through the Strait of Hormuz constrained.
  • Chevron says output is climbing from the Hess deal, with gains in Guyana, the Bakken and the Gulf of Mexico, and it targets 7% to 10% growth in 2026.
  • First-quarter profit fell despite higher prices and volumes because of timing mismatches on derivatives tied to undelivered products.
  • The company says it can fund spending and its dividend at oil below $50 a barrel through 2030, and it estimates each $1 rise in Brent adds about $600 million to yearly cash flow.
  • JPMorgan warns of a near-term Brent spike to $120 to $150 if Hormuz stays shut, while Goldman now expects about $90 in the fourth quarter if flows recover by late June.