Oil prices in 5nearly 20% plunge, Chevron and Exxon in focus

International oil prices fell 5nearly 20% in 2020. This was the biggest decline since . Optimism about a peace agreement between the United States and Iran is cited as the main reason for the drop.

This sharp drop is said to be at odds with the market’s underlying fundamentals. Global crude inventories are critically low. Daily demand exceeds supply by 900 million barrels.

The article reported that despite the decline, refiners and large energy companies could benefit from high oil prices. Chevron and ExxonMobil were cited as examples. Their cash flows and dividends were described as sensitive to oil price fluctuations.

Some investors see this correction as a buying opportunity rather than a reason to sell. Certain energy stocks have shown considerable volatility in the short term. The report also noted that high oil prices could persist through year-end.

The report emphasizes that short-term geopolitical news has driven significant price movements. By contrast, it describes underlying supply and demand indicators as still tight. It noted that upcoming weekly oil inventory reports and changes in geopolitical factors could affect the direction of prices.

This content summarizes reporting as of 6month 2day. The article includes views that see this decline as a buying opportunity rather than a reason to sell. It added that quarterly earnings from related companies and oil inventory data are key items to watch.