Energy Stocks Soar on Convergence of Oil Catalysts

Energy stocks rose sharply on Monday morning as two major oil catalysts came into play. The resumption of attacks between the U.S. and Iran sent oil prices up by about 3%, boosting energy stocks in the process.

Chevron, Exxon Mobil, Halliburton, and Occidental Petroleum were among the top gainers, with Chevron's stock price reaching $208.18, a 1% increase from Monday morning's trading session. This represents a year-to-date gain of 36.13% for the company.

Chevron CEO Mike Wirth noted that the impact of the Middle East conflict on the company's production remained isolated to a small region representing about 1% of total second-quarter production. Despite this, Chevron delivered $12.1 billion in earnings and cut debt by over $8 billion in the quarter.

Exxon Mobil also saw its stock price rise, reaching $162.91 on Tuesday morning, up 1.20% from Monday's trading session. The company reported losses of $706 million tied to Middle East supply disruptions in its Q1 report.

The Trump administration announced a deal with Venezuela to control over 65 billion barrels of its oil reserves on Friday, adding a long-horizon reserves story to the mix. Chevron is the most direct beneficiary of this deal due to its three producing joint ventures with PDVSA, which have increased production from 40,000 to 250,000 barrels per day.