CVX, SHEL, BP: Oil Prices Surge as U.S. Crude Inventories Plummet - Energy Stocks Primed for Rally

Black gold's back with a vengeance as supply tightens.

The Inventory Squeeze

U.S. crude stockpiles just got slashed—traders are scrambling as barrels vanish faster than a Bitcoin miner's patience during a power outage. Energy majors Chevron, Shell, and BP are licking their lips at the prospect of fatter margins.

Market Mechanics

Futures markets are pricing in sustained upward pressure. Refiners can't snap up physical crude fast enough—the contango structure's flipping backwardation faster than a crypto trader flipping shitcoins.

The Trader's Dilemma

Everyone's chasing exposure now that inventories are bleeding. Traditional energy plays suddenly look sexier than your average DeFi yield farm—at least these dividends don't get rugged.

Just remember—oil's rally makes OPEC+ smile while ESG funds quietly recalculate their virtue signaling budgets.

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Brent crude oil, the international benchmark, was up 1.64% in late day trading at $66.90 a barrel. West Texas Intermediate (WTI) crude oil, the U.S. standard, gained 1.27% to trade at $63.14 per barrel. The rise comes after the American Petroleum Institute reported a drop in U.S. crude inventories.

Crude prices had fallen in recent days on Optimism that an agreement to end the Russia-Ukraine war seemed close. However, U.S. President Donald Trump has indicated that Russian President Vladimir Putin might not want to make a deal to stop the war, raising the prospect that sanctions on Russian crude oil will remain in place.

The rise in crude oil prices has stocks of oil majors such as Chevron (CVX), Shell (SHEL), and British Petroleum (BP) trending higher.

Dwindling U.S. Supply

U.S. crude stocks declined by 2.42 million barrels in the week ended Aug. 19, according to the American Petroleum Institute. That drawdown came as flooding at a large U.S. refinery impacted oil flows, necessitating that America’s crude reserves be tapped.

At the same time, U.S. President Donald TRUMP has said he is trying to arrange a meeting between Putin and Ukrainian President Volodymyr Zelenskiy to be followed by a trilateral summit among the three leaders. Russia has not confirmed that it will take part in talks with Zelenskiy directly.

Is CVX Stock a Buy?

The stock of Chevron has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 11 Buy and four Hold recommendations issued in the last three months. The average CVX price target of $171.33 implies 10.31% upside from current levels.