Chevron Share Price Ties to Oil Prices: Is It Too Late to Buy?

Oil prices have recently broken through the $100/barrel threshold, causing some to wonder if it's too late to buy Chevron (CVX) stock. However, historical data suggests that this may not be a bad time to invest.

Since the start of the war in Iran, the stocks of ExxonMobil and Chevron have moved in tandem with benchmark Brent Crude oil prices. When Brent Crude prices rose, Chevron's share price surged, and when they fell, it dropped. This pattern has been consistent throughout the conflict.

The reason for this correlation is that most of Chevron's production is located outside the Middle East, making it less affected by supply disruptions in the region. As a result, Chevron benefits from higher global oil prices while still producing plenty of oil to sell at those inflated prices.