Why Chevron and ExxonMobil Stocks Bounced Higher Today
Investors in both (NYSE: CVX) and ExxonMobil (NYSE: XOM) had a good Friday, at least as far as their stocks' performance was concerned. On the back of a media report that a very promising new market is about to open, shares of both energy-sector incumbents rose at market-beating rates. Chevron closed the day 2.7% higher and ExxonMobil increased 2.3%; by contrast, the S 500 index crept up by 1.5%.
In an exclusive article published well before market hours on Friday, The Wall Street Journal reported that Chevron and ExxonMobil are currently in "advanced" talks with Algeria's state-run energy company Sonatrach on a drilling agreement. Citing the North African country's energy minister Mohammed Arkab and "people familiar with the discussions," the newspaper added that a deal could be reached by the end of this year.
Algeria has vast deposits of natural gas, which is currently in demand in Europe due to the disruptions caused by the war in Ukraine (and the ensuing need for new sources). According to the , the country is believed to hold the third-largest amount of shale gas reserves on this planet. At the moment, it has three pipelines through which it transports its gas to Europe.
Source Fool.com
Chevron Corp. Stock
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As a result the target price of 179 € shows a slightly positive potential of 16.23% compared to the current price of 154.0 € for Chevron Corp..
