On Monday, Shares of Chevron Corporation (NYSE:CVX), lost -2.71% to $87.28, after a stronger dollar and OPEC’s unchanged policies pressured oil prices.
WTI crude was down by 4.58% to $38.14 per barrel, while Brent crude is declining by 4.05% to $41.26 per barrel this morning, according to the CNBC.com index.
On Friday, OPEC decided to not cut production, despite global oversupply of crude oil that has caused prices to fall more than 60% since June 2014.
OPEC has been pumping more than 30 million barrels per day, which has pressured other producers around the world, counting in the U.S.
“It is not unreasonable to assume that downward pressure on prices will remain for the foreseeable future, as it will take time for low prices to materially scale back production,” Cenkos Securities analysts told Reuters.
Chevron Corporation, through its auxiliaries, engages in the petroleum, chemicals, and power and energy operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, in addition to holds interest in a gas-to-liquids plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals and fuel and lubricant additives, in addition to plastics for industrial uses. Chevron Corporation is also involved in the cash administration and debt financing activities; insurance operations; real estate activities; power and energy services; and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.
Shares of Southwest Airlines Co. (NYSE:LUV), inclined 0.34% to $49.58, during its last trading session, as oil prices decline.
The price of oil, a major expense for airlines, is down to near seven-year lows after Friday’s OPEC meeting, the Wall Street Journal reports. The group decided against limiting production despite the global oversupply of oil, according to the Journal.
“Any tiny risk that OPEC actually might do something during the next 6 months is completely off the table after Friday’s meeting,” Bjarne Schieldrop, chief commodities analyst at SEB Markets, said in a note, according to the Journal. “With this risk out of the picture, the oil price declines further.”
Southwest Airlines Co. operates passenger airlines that provide planned air transportation services in the United States and near-international markets. As of December 31, 2014, it operated 665 Boeing 737 aircraft; and had 12 Boeing 717 aircraft. The company served 93 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, in addition to 5 near-international countries, counting Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic. It also sells frequent flyer points and related services to business partners participating in the Rapid Rewards frequent flyer program, counting car rental agencies, hotels, restaurants, and retail locations. The company was founded in 1967 and is headquartered in Dallas, Texas.