Warren Buffett bought up more Occidental Petroleum shares after his Berkshire Hathaway won regulatory approval to buy up to 50%. OXY stock rose modestly Monday, potentially offering a buying opportunity.
Berkshire Hathaway now owns 26.8% of Occidental Petroleum, according to a regulatory filing Friday night. That came exactly one month after Warren Buffett's firm disclosed its OXY stock stake had reached 20.2%. Crossing the 20% ownership level means Berkshire Hathaway can record Occidental earnings on its books.
The Federal Energy Regulatory Commission has given Berkshire Hathaway permission to buy up to 50% of Occidental Petroleum. That's according to an order made public on Aug. 19. Berkshire made the request on July 11.
There is speculation that Berkshire could choose to buy all of Occidental, though The Wall Street Journal, citing sources, reported last month that Warren Buffett was unlikely to do so.
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OXY Stock Rises On Buffett Buys
OXY stock rose 1.8% to 66.80 on Monday after hitting 67.81 intraday. Higher crude oil futures also bolstered Occidental shares.
Last week, Occidental Petroleum stock fell 4.6% to 65.61, though it did find support at its 50-day moving average.
OXY stock broke out of a cup-with-handle base powerfully on Aug. 19 on the news that Buffett had approval to buy 50% of the company. Shares ran up to a record 77.13 on Aug. 29, but have now round-tripped all of that gain from the 66.26 buy point.
But Monday's action pushed OXY stock back above that buy point and breaking a short, downward-sloping trendline while rebounding from the 50-day line. That could offer an entry, though shares hit resistance at the 21-day moving average on Monday.
Occidental stock had held up better than many oil producers during the summer, thanks to Warren Buffett steadily adding shares.
Meanwhile, BRKB stock edged up 0.65% to 287.61. Shares rose 2.9% to 285.77 last week. That followed three weekly declines, starting a big reversal from the 200-day moving average.
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