New York, March 3, 2026, 15:37 EST — Regular session
- Occidental Petroleum shares gave up early gains and turned lower, caught up in the choppy risk-off mood.
- Oil surged to its highest level of 2024, as renewed concerns over potential disruptions in the Strait of Hormuz rattled supply outlooks.
- Wednesday brings a close look at U.S. inventory data, with investors also eyeing Oxy’s early debt-tender deadline.
Occidental Petroleum Corp (NYSE: OXY) slipped about 1.1% to $53.59 Tuesday afternoon, giving back an earlier jump of more than 4% in a choppy session. Shares opened at $55, swinging between $56.62 and $53.12 so far.
Crude prices shot higher for a third straight day, jolted by supply concerns after the U.S.-Israel conflict with Iran escalated and shipping through the Strait of Hormuz ran into trouble. Brent climbed 6.1% to $82.44 a barrel, with U.S. West Texas Intermediate up 6.2% at $75.66—both marking their highest since last year.
Higher crude prices spell bigger revenues for Occidental and its U.S. peers, but traders are juggling concerns over how pricier energy could stoke inflation and shift rate expectations. “Oil’s rallied … and this has pushed yields higher and stocks lower,” said John Velis, Americas macro strategist at BNY. Reuters
Exxon Mobil dropped roughly 2.3%, with Chevron off 0.9% and ConocoPhillips down 0.5%—all three moving lower even as crude prices jumped.
The Strait of Hormuz has become the focal point for traders and analysts sizing up the potential limits of this rally. “The key factor here is the closing of the Strait of Hormuz,” said Ajay Parmar, director of energy and refining at ICIS. Reuters
Occidental has its own catalyst on the horizon. According to a Feb. 19 filing, the company is making cash tender offers targeting up to $700 million of selected notes and debentures. Investors who submit their holdings by 5 p.m. New York time on March 4 stand to receive an early tender premium. The offers wrap up March 19. In essence, a tender offer lets a company repurchase debt at announced prices. The early tender premium sweetens the deal for those who act by the first deadline.
Higher energy isn’t all good news for equities once it begins to weigh on demand. On Monday, U.S. diesel futures cracked $3 a gallon for the first time since November 2023. Economist Philip Verleger told clients distillate fuel oil inventories—including diesel and heating oil—are now “at the bottom of the normal range.” Reuters
Coming up next: the U.S. government’s Weekly Petroleum Status Report, slated for release at 10:30 a.m. Eastern this Wednesday.
OXY investors are also watching for Wednesday’s 5 p.m. New York deadline—marking the early tender cut-off for Occidental’s debt buybacks, before the March 19 expiration, the company confirmed.
