Oil prices under strain - Anticipation builds prior to OPEC+ gatherings this weekend involving Shell, Chevron, and other key players

In the ever-evolving world of the oil market, two major players stand out: Chevron Corporation and Shell. Both companies have been mentioned prominently in recent discussions.

Chevron Corporation (WKN: 852552) and Shell (WKN: A3C99G) are currently offering attractive dividend yields of 4.2% and 4.6%, respectively. These returns make them appealing choices for dividend hunters. However, investors should be mindful and secure their positions in Chevron with a stop-loss at $115.00 and in Shell with a stop-loss at $24.00.

Shell has shown significant strength in recent months, but its stocks have come under some pressure recently. On the other hand, Chevron Corporation has maintained a steady performance.

The current price for a barrel of North Sea Brent crude is $66.75, while U.S. WTI crude is priced at $63.18. Analyst Vivek Dhar from the Commonwealth Bank of Australia believes that the current Brent prices above $65 make an increase in production plausible.

Observers expect oil production to remain stable, but traders fear additional supply. This fear is partially due to expectations of increased oil production by Chevron Corporation, Saudi Arabia, and their partners. Saudi Arabia is set to release an additional 500,000 barrels of crude per day starting this month, with further output increases through 2025 and into 2026. OPEC+ members, including Saudi Arabia, have agreed to begin restoring previously halted production layers from October 2025 onward.

However, Saudi Arabia and its partners have yet to make a definitive decision about oil production. The market is already being weighed down by higher production and a slowing economy in China.

U.S. investment bank Goldman Sachs predicts a potential downward trend for Brent prices, with a forecast that the price could fall below $50 by the end of 2026. This prediction adds another layer of uncertainty to the market.

Amidst these fluctuations, both Chevron Corporation and Shell remain current recommendations from AKTIONÄR in the oil sector.

On a related note, the U.S. Energy Department reported an unexpected rise in oil reserves last week. This development could potentially impact the market dynamics in the coming days.

Finally, OPEC+ is scheduled to meet this weekend to discuss a potential increase in production. The decisions made during this meeting could significantly influence the future of the oil market.

Oil prices under strain - Anticipation builds prior to OPEC+ gatherings this weekend involving Shell, Chevron, and other key players