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Furthermore, oil prices hit a three-year peak on October 4 after OPEC+ confirmed it would stick to its policy of increasing output gradually. OXY’s continued improvement in average global production should position it to capitalize on the growing demand.
However, an unexpected increase in U.S. crude inventories has caused oil prices to decline recently. And even though investors’ increasing risk-tolerance in the energy space bodes well for the stock, concerns related to the volatility in crude oil prices and Hurricane Ida-induced oil production losses could lead to OXY suffering a price pullback in the near term.
