NEW YORK (TheStreet) -- Chevron (CVX) - Get Report stock is rising 1.03% to $101.69 in early afternoon trading on Monday after the U.S. Supreme Court refused to hear a case against the energy company related to an oil field development in Ecuador.
Ecuador was seeking to challenge a $96 million arbitration award from The Hague's Permanent Court of Arbitration in favor of the San Ramon, CA-based company, which was upheld by the U.S. Court of Appeals in August 2015, Reuters reports.
In 1973, Texaco Petroleum, now owned by Chevron, agreed to develop oil fields and sell oil to the Ecuadorian government below market prices, but the company claimed that Ecuador breached the agreement, Reuters added.
Texaco sued the country several times in the 1990s, but the courts in Ecuador did not process the claims within a reasonable time frame, leading Chevron to seek arbitration in The Hague in 2006.
Additionally, shares of Chevron are getting a boost from rising oil prices caused by a weaker dollar and Nigerian output shortages, Reuters noted.
WTI crude is up 2% to $49.59 per barrel on the New York Mercantile Exchange, while Brent crude is increasing 1.67% to $50.47 per barrel on the Intercontinental Exchange this afternoon.
Separately, Chevron has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's solid financial position, which is offset by feeble earnings per share growth, deteriorating net income and poor profit margins.
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