Occidental Shares Rise as Crude Prices Climb Amid Strait of Hormuz Tensions
Occidental Petroleum Corporation (NYSE:OXY) shares rose 1.3% to $59.80 on Tuesday, marking a third consecutive increase as crude prices continued to climb due to geopolitical tensions in the Strait of Hormuz.
The dispute between the United States and Iran intensified, with Iran stating that the strait would remain closed until certain conditions were met by the US. However, the U.S. maintained its stance that the waterway was accessible.
Brent crude reached its highest level in three weeks at $91.02 per barrel, while WTI crude settled at $84.94. Despite this, Occidental's shares underperformed compared to other energy companies, with EOG Resources (NYSE:EOG) rising 1.7%, Chevron Corporation (NYSE:CVX) increasing by 1.5%, and Devon Energy Corporation (NYSE:DVN) advancing 0.6%.
Analysts pointed out that the primary difference lies in pricing rather than output, with Occidental achieving a global average of $96.78 per barrel in the second quarter. This is 5.9% lower than Brent's current price and 8.5% below WTI's price.