The trade conflict with China is intensifying due to imposition of 15% tariffs on particular Chinese goods on September 1st. Now China began to targeting U.S. crude by imposing 5% tariff on Oil imports. On 2nd September, futures of Crude Oil WTI fell by 0.15% to $55.02 till 7:24 AM due to the tariffs. Investors are worried about whether the largest players in the market will be able to last during this tariff round of trade war.
The situation with Chevron Corporation (CVX) may not improve due to new tariffs. The shares of the company fell by 3% in the month following its August Q2 earnings release. However, some analysts say that Chevron’s business will keep moving towards the path of long-term growth owing to its focus on improving critical areas of its business. The company has already started focusing on the reduction of financial and execution risk through limiting concurrent major capital projects. Based on all factors, it is estimated that the CVX’s share prices may surge 19% over the next twelve months. Overall, CVX shows a ‘Moderate Buy’ analyst consensus as well as an average price target of $143, signifying 21% upside potential. Since August 2 Q2 earnings release, Exxon has been proceeding even dreadful than Chevron.
Last month, the shares of the company had fallen by 5%. Exxon Mobil Corporation is one of the largest energy companies in the world. It has market capital of worth $290 billion. It also has a strong balance sheet owing to long-term debt with the capital structure of less than 10% and a yield of 5%, which falls at high end of the historical range of the company. Some wall street members have mentioned the weakness in the company’s chemicals and downstream segments, which is the cause of concern. All in all, on this oil stock, wall Street is less bullish. XOM shows a ‘Hold’ analyst consensus and an average price target of $81, indicating 18% upside potential.
The last Oil stock on our list has also fallen following its July Q2 earnings release. BP plc’s shares have fallen by 4%. The company is focusing on expanding its product portfolio and taking efforts to discover other opportunities. Considering all the factors Bp shows an analyst consensus ‘Moderate Buy’ and average price target of $ 53 indicating 43% upside. With a focus on crucial issues, the three giants of oil industry may survive the trade conflict escalation.