This year’s oil stock prices have fluctuated. Brent oil, the world benchmark, was below $80 a barrel in 2022 when Russia invaded Ukraine. Since then, global economic concerns have sent it back into the $80s.
OPEC agreed to cut its output by 2 million barrels per day starting next month to stabilize crude prices. This has driven oil to the mid-$90s. As those barrels disappear next month, crude might keep rising.
This is typical.
Conservative income investors should use current price moves as a warning to erring on the side of caution when selecting a long-term energy investment. That puts you in the same league as ExxonMobil, TotalEnergies, BP, Shell, and Chevron. Chevron has the strongest balance sheet with a 0.17 debt-to-equity ratio. Financially, it’s well-positioned to handle energy market volatility.
Chevron Stock
Chevron’s ( NYSE:CVX ) 3.9% dividend yield and a 30-year history of yearly dividend increases make it a Dividend Aristocrat . It hasn’t handled every oil sector up and down as well as this one, but income investors remain a priority—volatile oil. Chevron can ride the surge while preserving dividend investors.
ExxonMobil Stock
This dividend monster benefits from OPEC’s move.
Oil prices are rising in expectation of a tighter oil market due to OPEC’s production decrease. ExxonMobil ( NYSE:XOM ) is one of the world’s largest oil exploration and production businesses. The impact might be even more significant with the oil giant’s breakeven price decreasing.
ExxonMobil’s breakeven oil price between 2022 and 2023 is $37 per barrel. ExxonMobil can fund its capital-spending program and continue its dividend payout as long as Brent crude averages around this level. At higher Brent crude prices, the corporation can produce more income to support growth, repurchase more shares, and incre...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube
PressReach Disclaimer .