Why Does Warren Buffett Remain Bullish On Occidental Petroleum (OXY) Despite Its High Sensitivity To Oil?

Occidental Petroleum Corporation (NYSE:OXY) is included successful our database of the best Warren Buffett stocks.

An lipid drilling platform. Photo by Jan-Rune Smenes Reite connected Pexels.

Buffett added Occidental Petroleum Corporation (NYSE:OXY) to his portfolio successful 2019, erstwhile the billionaire made the concern to assistance the lipid shaper money its acquisition of Anadarko Petroleum. The archetypal involvement comprised 7.47 cardinal shares valued astatine $332.08 million, making the banal Warren Buffett’s 39^th biggest holding arsenic of Q3 2019. Berkshire present owns 264.94 cardinal shares worthy $10.89 cardinal arsenic of the 4th fourth of 2025.

Meanwhile, Occidental Petroleum Corporation (NYSE:OXY) enjoys the assurance of different hedge funds, with 67 retired of 1,041 hedge funds remaining bullish connected the stock. The combined hedge money involvement successful the institution totals $12.03 cardinal arsenic of Q4 2025.

As of the aforesaid period, billionaire sentiment remains beardown arsenic well, with 24 retired of 107 billionaires remaining bullish connected the stock, which translates into stakes worthy $11.78 cardinal successful the stock.

Occidental Petroleum Corporation (NYSE:OXY)’s concern lawsuit reflects an progressively disciplined relation with beardown vulnerability to lipid prices but with a higher beta.

Jim Cramer described Occidental Petroleum Corporation (NYSE:OXY) arsenic a “higher hazard mode to play the terms of crude,” noting that it tends to rally sharply erstwhile lipid prices emergence and diminution erstwhile they weaken, highlighting its adjacent linkage to commodity trends. The banal jumped to its 52-week precocious by the extremity of March, aft climbing astir 20% since the Iran warfare started successful precocious February. As of April 20, 2026, the company’s shares are up implicit 30% successful 2026 truthful far, somewhat outperforming the Oil & Gas E&P industry’s 20% gain.

Cramer highlighted a cautious forecast for Occidental Petroleum Corporation (NYSE:OXY) depending connected the Iran conflict, arsenic helium commented:

“People bash that. Instead of buying a crude index, they bargain Occidental. When lipid goes higher, this banal rallies hard, but erstwhile lipid comes down, the banal gets pulverized. Basically, OXY’s a large loser if bid breaks retired and a large victor if Iranians importune connected keeping the Strait closed.”

That sensitivity is accompanied by improving fundamentals.

In its fourth-quarter 2025 net call, CEO Vicki Hollub described 2025 arsenic an “exceptional year,” highlighting $4.3 cardinal successful escaped currency travel contempt little lipid prices, grounds accumulation of 1.4 cardinal BOE/day, and $275 cardinal successful operating outgo reductions.

Management besides pointed to $2 cardinal successful cumulative outgo savings since 2023, with an further $500 cardinal expected successful 2026. This is supported by a 16.5 cardinal BOE assets basal with much than 30 years of low-cost inventory, 84% of which breaks adjacent beneath $50 per barrel.