OXY Stock Could Soar 20% if Oil Prices Stay Above $100

Occidental Petroleum (OXY) stock could see a significant rise if oil prices hold above $100 per barrel, according to analysts. The company's upstream business is directly exposed to rising oil prices, making it more sensitive than larger energy companies.

Oxy needs oil to remain above its breakeven range of $40-$45 per barrel to maintain its current capital expenditures and dividends. If oil rises above $100, the company's free cash flow would grow rapidly, driving up its stock price.

At current prices around $58, OXY would still be a bargain at 18 times next year's earnings. Analysts predict that if oil holds above $100, Occidental Petroleum's stock could return 20% by the end of this year.