Chevron stocks are down today after the company released disappointing earnings numbers this Friday. Chevron’s Q1 2021 profits fell 29% compared with the same period in 2020, as weaker oil and gas prices, weaker refining margins, and production losses combined to erode the profitability of its operations.
While its peers see better results due to higher crude oil prices and reduced spending, Chevron was hit by production losses occasioned by winter storm Uri. The absence of any asset sales in the period under review also impacted the numbers after similar sales were conducted last year and boosted profits. Chief Finance Officer Pierre Breber said Uri cost the company $300 million in repairs, missed production in the Permian Basin, and lost production in refining and chemicals.
Chevron’s earnings of 90 cents per share paled compared with the $1.31 per share it earned in the same period a year earlier. The stock is down 2.92% as of the time of writing.
Technical Outlook for Chevron
The active daily candle opened with a bearish gap and is now testing support at 103.59. A breakdown of this price level opens the door towards the 100.19 psychological support level, with 95.53 and 91.65 forming additional downside targets.
On the other hand, bulls need to see a recovery above 112.69 (15 March high) to restore the uptrend. This move would require the price to bounce on any of the aforementioned support levels, and also needs to take out the barriers at 105.91 and 107.86 to become achievable.