Why Is Chevron Stock Surging on Thursday?

Chevron Corporation (NYSE:CVX) stock surged Thursday as rising crude prices brightened the earnings outlook for major oil producers. The Nasdaq is down 1.60% while the S&P 500 has shed 0.67%. On Thursday, UBS maintained its Buy rating on Chevron and raised its price forecast to $235. Crude oil surpassed $92.60 a barrel on Thursday, hitting its highest level in nearly a month as shipping recovery signs in the Strait of Hormuz faltered. Read Also: AI Bubble Nearing a Breaking Point? Ray Dalio’s Warning Reveals a Risk Hiding in These ETFs Reports indicated a tanker was struck north of Qatar on Wednesday, while maritime security sources noted tanker attacks in the Strait reached a war-high last week. According to Trading Economics, the White House asked the Pentagon for pre-midterm Iran strike options, while U.S. President Donald Trump stated he no longer sought an Iran deal. Gulf Production Update Chevron said Wednesday it is monitoring Tropical Storm Isaias. Non-essential personnel are being evacuated from Gulf platforms, though production at Chevron-operated assets remains normal. Midstream Restructuring Separately, on Tuesday, Chevron agreed to transfer its Hess Midstream LP (NYSE:HESM) ownership and DJ Basin assets to Hess Midstream for $200 million in cash. Chevron expects a 50% cut in Bakken unit midstream costs and a $3 billion to $4 billion charge. Technical Analysis Chevron remains in a clear longer-term uptrend, trading 12.5% above its 200-day SMA and 9.2% above its 100-day SMA, which signals buyers have controlled the intermediate trend for months. The 20-day SMA is also above the 50-day SMA, and the 50-day SMA is above the 200-day SMA—two bullish crossover conditions that typically support "buy-the-dip" behavior. From a levels standpoint, the stock is approaching an area where rallies can stall near prior highs, while the first meaningful "line in the sand" sits closer to the recent pullback zone. Key Resistance: $218 — a nearby round-number area that lines up with the 52-week high zone where breakouts can fail on the first try Key Support: $201 — a nearby pivot area that also sits close to the 50-day/20-day moving-average cluster, where dip-buyers may defend the trend. CVX Price Action: Chevron shares were up 3.09% at $211.49 at the time of publication on Thursday. The stock is approaching its 52-week high of $217.78, according to Benzinga Pro data. Read Also: Americans’ Inflation Expectations Hit Highest Level Since 2023 as Their Financial Outlook Worsens: New York Fed Survey Image via Shutterstock