Overview
- Analysts say supply will likely stay tight into 2027 because shut-in Gulf wells take months to restart and inventories need rebuilding, keeping Brent near $110 a barrel.
- Occidental sold its OxyChem unit to Berkshire Hathaway for $9.7 billion and reported principal debt of $13.3 billion, moving toward a $10 billion milestone that would pivot cash to dividends and buybacks.
- The company posted a stronger-than-expected first quarter and said production averaged about 1.43 million barrels of oil equivalent per day, a company record.
- The UAE exited OPEC and fast-tracked a pipeline that bypasses the Strait of Hormuz, and Occidental’s work with ADNOC could expand as ADNOC weighs investing in a U.S. carbon-capture project run by the company.
- Occidental shares have risen about 30% over the past year even as oil prices climbed much more, suggesting the market has not fully reflected the case for prolonged tightness.