A Lucky Break or a Calculated Gamble? Chevron's recent quarter saw a $3. 1 billion loss turn into a gain, with the energy giant bringing in a respectable $368 million from its commodity derivatives.
This reversal was not a coincidence, but rather the result of Chevron's net short position in these derivatives, which allowed them to profit when oil prices fell.
Oil prices plummeted from over $100 per barrel in March and April to around $73 just before Chevron's earnings window, creating a favorable market for the company.