Oil prices are finishing high, but the trends of the two oil giants may diverge

RBC Capital Markets believes Exxon Mobil is poised to benefit as the oil market tightens, and Chevron's share price looks increasingly expensive
.

On Thursday (April 21), agency analyst Biraj Borkhataria said in a note to clients that Exxon Mobil will continue to benefit from ongoing geopolitical tensions and soaring commodity prices, and is expected to gain upward momentum
from its refining business.

In a separate report, Borkhataria downgraded Chevron's rating from outperform to flat, saying he sees limited growth opportunities because CVX's share price looks increasingly expensive and valued 60 percent
above other superpowerhouses.

Borkhataria also noted that Chevron may indirectly gain Russia-related exposure through its operations in Kazakhstan's Tengiz field, where oil will be transported and exported
through Russia.

Borkhataria wrote: "Chevron shares have risen more than any other major peer in recent months, and RBC believes that this is partly due to investors looking for safe havens and strong commodity prices
.
While RBC expects commodity prices to remain strong, it still believes that the company's current valuation leaves less room for positive surprises in the future, while possible headwinds from the Tengiz field compared to peers could weigh on earnings outlooks
.

While upgrading the Exxon Mobil rating, RBC raised its XOM price target to $100 per share, nearly 14 percent
above the stock's closing price on Wednesday.
The agency also raised Chevron's price target to $165 from $160, 1 percent
below CVX's Wednesday close.

Affected by the ongoing Russia-Ukraine conflict and record inflation, energy companies outperformed the S&P 500, which is up 45%
since the beginning of 2022.
During that time, shares of Exxon Mobil and Chevron soared 43.
8% and 47%,
respectively.