Overview
- Oil prices tumbled, with WTI down more than 14% to about $81 a barrel and Brent off roughly 10% to about $89, setting a tougher backdrop for producers.
- Occidental shares dropped about 6.6% to $53.12 as the selloff cut the expected value of its oil output and squeezed projected margins.
- Ahead of a May 5 earnings release, consensus now sits at 56 cents per share on $5.51 billion in revenue, pointing to a softer quarter than a year ago.
- Earlier in the week, Energy Secretary Chris Wright and Interior Secretary Doug Burgum were reported to be planning talks with major drillers to press for higher U.S. output, a headline that coincided with OXY’s momentum score jumping from 31.02 to 92.51, per Benzinga.
- Analysts keep a Hold stance with an average price target of $61.93, and the stock’s roughly 42-times earnings multiple leaves little cushion if oil stays lower.