Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

Occidental Petroleum Corporation (NYSE: OXY) is an international energy company with assets primarily in the United States, the Middle East, and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. It operates through three segments: oil and gas, chemical and midstream and marketing.

This US Inflation Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• OXY's share price has dropped by 12.35% in the past three months. Similarly, in the long term, the stock has corrected by 15.70% over the past nine months.
• The stock is currently trading near to the lower end of its 52-week range of USD 71.19 and 52-week low price of USD 48.42, with the expectations of an upside movement if the current support level of USD 50 holds.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 45.14.

1.2 Summary Table

1.3 The Key Positives & Negatives

1.4 Underlying Commodity Analysis

WTI crude oil futures declined towards USD68 per barrel on Friday, poised to end the week with a loss, ending a three-week streak of gains. This downturn was driven by concerns over a potential shift to an oversupply in the global oil market. The International Energy Agency (IEA) forecasted an oil surplus for the following year, citing slower demand growth in China and increased global production. The surplus could be exacerbated if OPEC+ proceeds with plans to restore previously halted production. Additionally, a stronger US dollar, which reached a two-year high, made dollar-priced commodities less attractive. U.S. Energy Information Administration (EIA) data also revealed a 2.1 million-barrel increase in U.S. crude inventories last week, surpassing the anticipated 1.9 million-barrel rise. However, there was a significant 4.4-million-barrel drawdown in gasoline stocks, marking the lowest level for this time of year in the past decade.

Section 2: Occidental Petroleum Corporation (NYSE: OXY) (“Buy” at the closing market price of USD 50.67, as of November 14, 2024)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 14, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stocks prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.