Jul. 24 at 8:16 PM
Piper Sandler initiated coverage of the Global Integrated Oil sector with a largely neutral outlook, naming Chevron as its top pick and the only stock rated Overweight. The firm expects Brent crude to average around
$80 per barrel through next year and sees refining margins remaining strong, favoring downstream operations.
Analysts believe Chevron offers upside after the resolution of its Hess dispute and the completion of the Tengiz expansion project, improving its cash-flow outlook and valuation prospects. Chevron also temporarily halted production at its Petronius Gulf of Mexico facility ahead of a storm, while BMO reiterated its Outperform rating.
Shell received a Neutral rating. The company recently completed the
$1.3 billion sale of Jiffy Lube International and is reportedly considering a sale of offshore wind assets worth more than
$1 billion as part of its portfolio optimization strategy.
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