Middle East Conflict Drives Up Crude Rates as Occidental Sees Lower Realized Oil Prices

Occidental Petroleum reported lower realized oil prices despite higher benchmark crude rates due to the ongoing conflict in the Middle East. The US-Israel war on Iran has disrupted energy supplies, causing a significant increase in Brent crude prices. According to LSEG data, benchmark Brent crude averaged $89.62 per barrel during the first quarter of 2026, up from $75.16 last year.

However, Occidental's worldwide average realized oil price was $69.91 per barrel in the first quarter, a decrease of about 1.6% compared to the same period last year. The company's natural gas prices also declined, averaging $1.20 per million cubic feet, almost halving from $2.30 per mcf last year.

The conflict has effectively closed the Strait of Hormuz, a critical conduit for global energy flows, leading to increased crude prices. Despite this, Occidental's realized oil prices have not kept pace with the rising benchmark rates.