BMO Capital Boosts Chevron (CVX) Target, Sees Wide Range for Oil Prices

Chevron Corporation (NYSE:CVX) is included among the 15 Best Low Volatility Blue Chip Stocks to Buy Now.

BMO Capital Boosts Chevron (CVX) Target, Sees Wide Range for Oil Prices

On April 7, BMO Capital lifted its price recommendation on Chevron Corporation (NYSE:CVX) to $205 from $200. The firm kept an Outperform rating, updating its Q1 assumptions to reflect the war in Iran and the ongoing oversupply in the North American natural gas market. The analyst described a market that is holding its breath, with oil and equities reacting to uncertainty around the next move from Donald Trump. If tensions ease and flows through the Strait of Hormuz resume, oil prices could settle back into a $75 to $85 per barrel range.

If the situation moves in the other direction, with further escalation and the Strait remaining closed, prices could rise sharply, potentially reaching $150 to $200 per barrel. BMO also made the point that a prolonged conflict would come with a high economic cost. The firm’s view is that the situation is likely to de-escalate, with the war expected to wind down by the end of April.

Chevron Corporation (NYSE:CVX) operates as an integrated energy company. It produces crude oil and natural gas, and also manufactures transportation fuels, lubricants, petrochemicals, and additives, with operations across its Upstream and Downstream segments.

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