Warren Buffett's Berkshire Hathaway reported late Monday it has once again added to its Occidental Petroleum holdings, adding nearly 3 million shares. Also on Tuesday, oil prices advanced above $80 per barrel for the first time since April.
Buffett purchased 2.95 million shares of OXY between June 13-June 17 with a price range between 59.59-59.77, according to regulatory filings on Monday. Berkshire Hathaway now holds a nearly 29% stake in the oil producer.
Buffett has tended to purchase Occidental stock around that price level. MarketSurge charts show OXY stock finding price support around the 55-57 range, dating back to June 2022.
Meanwhile, U.S. crude futures traded up 2% to settle above $8o per barrel on Monday, holding those gains in Tuesday's early trade. Oil prices have climbed note quite 10% since the start of June on an improving global demand outlook and expectations that major oil producers will keep supply tight. U.S. oil prices have now increased around 13% in 2024.
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Brent prices were above $84 per barrel on Tuesday.
Warren Buffett Increases OXY Stake
Occidental Petroleum stock gained 1.8% to 61.28 during market action on Tuesday. On Monday, OXY gained 0.6% to 60.20.
Shares are down about 15% since hitting a recent high of 71.19 on April 12. OXY is currently trading below its 200-day moving average, according to MarketSurge.
Warren Buffett's Berkshire Hathaway substantially increased its stake in the international oil play over the past year, putting OXY among Buffett's top holdings.
In August 2022, the Federal Energy Regulatory Commission granted Berkshire Hathaway approval to purchase up to 50% of available OXY stock.
However, Warren Buffett told shareholders in early 2023 he has no intention of taking over the company.
Occidental Petroleum and Buffett's Berkshire Hathaway Energy also recently announced a joint venture to extract lithium from geothermal electricity production.
Buffett's Berkshire Hathaway Energy business and Occidental Petroleum teaming up on lithium production comes as Exxon Mobil in late 2023 announced plans to begin producing lithium by 2027.
Occidental stock has a 24 Composite Rating out of 99. The Warren Buffett stock also has a 33 Relative Strength Rating and a 10 EPS Rating.
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