Latest news with #oilstocks
Wall Street Journal
14-05-2025
- Business
- Wall Street Journal
U.S. Crude Oil Supplies Rise Unexpectedly
U.S. crude oil inventories posted an unexpected build last week, while product stocks fell amid higher demand, according to data released Wednesday by the U.S. Energy Information Administration. Commercial crude oil stocks excluding the Strategic Petroleum Reserve rose by 3.5 million barrels to 441.8 million barrels in the week ended May 9, and were about 6% below the five-year average for the time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude stockpiles would fall by 1.8 million barrels.
Yahoo
10-05-2025
- Business
- Yahoo
Why Buffett Holding Occidental Petroleum Rallied Today
Occidental reported mixed earnings, with a miss on the top line but a beat on adjusted EPS. In addition, the U.S. announced a trade deal with the United Kingdom, fueling optimism over trade deals and tariffs. 10 stocks we like better than Occidental Petroleum › Shares of Buffett holding Occidental Petroleum (NYSE: OXY) rallied 6.2% in Thursday trading. Occidental reported earnings last night, with mixed results. However, investors focused on the profit metric, as Occidental displayed resilient production metrics with more efficient costs. Furthermore, and perhaps even more meaningful than the earnings report, oil stocks were generally up, as the administration announced a trade deal with the U.K. today, spurring optimism that a global tariff-induced recession may be avoided. In the first quarter, Occidental reported revenue of $6.8 billion, up 13.7% year over year, and $0.87 in adjusted (non-GAAP) earnings per share (EPS). While the top line slightly missed, investors apparently took comfort in the solid bottom line, which beat expectations by a solid $0.11. One can thank Occidental's technology chops for more efficiently turning profits, even in a lower oil price environment. In the company's presentation, management noted a 17% improvement in drilling duration per well in the Permian Basin, resulting in 18% lower costs per well. Management also divulged that as a result of efficiencies, it was reducing its Permian rig count by two, and also said it was lowering combined operating and capital expenditures by $350 million this year, with only "minimal" impact to production. Of note, it was Occidental's huge, low-cost inventory in the Permian along with its commitment to technology enabling lower costs that drew Buffett to invest in the stock. The lower costs were music to investors' ears, who have worried about profitability in the wake of President Donald Trump's tariff announcements. Since April 2, the price of oil has plunged as recession odds have increased. However, there was also optimism over tariff and trade negotiations today, as Trump announced the administration's first trade deal, made with the U.K. In a press conference announcing the deal, Trump also said other deals were close to coming to fruition, and that this weekend's initiation of trade talks with China would be "very substantive," saying the current tariff on China "can't go any higher." In response to the trade deal optimism, the price of oil rose 3.3%. That being said, today's oil price is still a hair below $60 per barrel. In the first quarter, Occidental realized an average price of $71.07. The current share price of Occidental is lower than Buffett's average price, so investors may realize an opportunity if Buffett turns out to be right on the name. That being said, it's still looking like oil and gas stocks may struggle this year. After all, even if trade deals are struck, the universal 10% tariff on most countries will stick and is new this year, which could slow economic activity. Add in the fact that OPEC+ just increased its production quota two days ago, and the global oil industry appears on the verge of a price war. That being said, Occidental appears to be one of the most efficient U.S. producers with lots of reserves in the Permian Basin. So, it should remain a strong house, but perhaps on a bad block, in 2025. Before you buy stock in Occidental Petroleum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Occidental Petroleum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $717,471!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Why Buffett Holding Occidental Petroleum Rallied Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
