Chevron shares moved higher during Monday's trading session, supported by a rebound in crude prices and progress restoring output at a major international oilfield it operates.
The company's stock gained 0.7% to $182.19, while broader energy sector peers also saw positive momentum. Exxon Mobil added approximately 0.7%, and Shell's U.S.-listed shares climbed close to 3%.
Tengiz Field Recovery Progress
Production at the Chevron-operated Tengiz field in Kazakhstan has recovered to roughly 60% of its peak capacity, according to industry sources. Output is estimated near 550,000 barrels per day as of February 8, following disruptions caused by fires last month that damaged power infrastructure.
The operating consortium aims to restore full production of approximately 950,000 barrels daily by February 23. This recovery is significant for Chevron, whose near-term cash flow remains closely tied to operational volumes and commodity price swings.
Geopolitical Risk Premium Returns
Oil benchmarks climbed more than 1% after the U.S. Department of Transportation issued an advisory urging U.S.-flagged commercial vessels to avoid Iranian territorial waters when transiting the Strait of Hormuz and Gulf of Oman. Brent crude advanced 1.3% to around $68.94 per barrel, while U.S. West Texas Intermediate gained 1.3% to approximately $64.38.
The Strait of Hormuz serves as a critical chokepoint for global oil transit, handling about 20% of worldwide supply. Analysts noted the advisory reintroduces a geopolitical risk premium to crude markets. "The Iranian risk premium cannot be fully defused," commented SEB analyst Bjarne Schieldrop. UBS analyst Giovanni Staunovo described the situation as "extremely difficult to judge," with traders monitoring potential diplomatic developments.
While the Tengiz recovery could boost physical supply in coming weeks, current price movements appear more driven by Middle East tensions than incremental barrels from Kazakhstan. Market participants continue to assess both operational progress and evolving geopolitical risks, with attention focused on shipping security and the timeline for Tengiz's full restoration.
