Energy Stocks Surge Amid Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Source: Fool
- Energy Sector Outperformance: In March, the energy sector of the S&P 500 index rose approximately 11.9%, contrasting sharply with declines in all other sectors, highlighting the resilience of the energy industry amid market turmoil.
- Oil Price Surge Impact: The price of Brent crude oil has surged 55% since late February due to the Middle East war and the closure of the Strait of Hormuz, directly driving stock prices higher for energy companies, with Occidental Petroleum up 26% and Marathon Petroleum up 24.8%.
- Rising Gasoline Prices: The average price of regular gasoline in the U.S. has climbed over $1 to about $4, significantly boosting profits for energy companies and further solidifying their market position.
- Optimistic Future Outlook: While the market anticipates a potential decline in oil prices in the coming months, energy companies are expected to benefit from elevated prices through 2026, especially as much infrastructure and strategic reserves have been damaged, keeping energy stocks attractive.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to fall
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 65.000
Low
38.00
Averages
47.27
High
64.00
Current: 65.000
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation 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. Its segments include oil and gas, and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The Company's midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities. This segment also includes low-carbon venture businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Stocks Rise on Easing War Fears and Falling Oil Prices
- Market Recovery: The S&P 500 rose by 0.72% to 6,575.32, while the Nasdaq Composite climbed 1.16% to 21,840.95, reflecting optimism over easing Iran war fears, although the S&P 500 is still down 4% year-to-date.
- Semiconductor Strength: Micron Technology surged 8.96% and Intel increased by 8.78%, with Intel announcing a buyback of its stake in an Irish chip plant, boosting confidence in the semiconductor sector.
- Airline Stock Resurgence: American Airlines Group and Delta Air Lines gained 3.63% and 2.17%, respectively, indicating a cautious return of investor confidence in travel stocks despite ongoing market uncertainties.
- Energy Stock Volatility: Occidental Petroleum and Chevron fell by 4.17% and 4.59%, respectively, yet both have seen significant gains this year; oil prices dipped below $100 intraday, closing down nearly 15%, which may exert inflationary pressure on the stock market.
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U.S. Stocks Rise as Iran War Fears Ease
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- Semiconductor Strength: Micron Technology and Intel saw significant gains, with Intel announcing a buyback of its stake in an Irish chip plant, reinforcing its competitive position in the industry.
- Airline Stocks Recovery: American Airlines Group and Delta Air Lines finished in the green, indicating a cautious return of investor confidence in travel stocks, despite ongoing market uncertainties.
- Energy Stock Volatility: While Occidental Petroleum and Chevron experienced sharp declines, they have surged significantly this year, highlighting ongoing market concerns regarding energy prices.
See More
Energy Stocks Surge Amid Market Decline
- Energy Sector Outperformance: In March, the energy sector of the S&P 500 index rose approximately 11.9%, contrasting sharply with declines in all other sectors, highlighting the resilience of the energy industry amid market turmoil.
- Oil Price Surge Impact: The price of Brent crude oil has surged 55% since late February due to the Middle East war and the closure of the Strait of Hormuz, directly driving stock prices higher for energy companies, with Occidental Petroleum up 26% and Marathon Petroleum up 24.8%.
- Rising Gasoline Prices: The average price of regular gasoline in the U.S. has climbed over $1 to about $4, significantly boosting profits for energy companies and further solidifying their market position.
- Optimistic Future Outlook: While the market anticipates a potential decline in oil prices in the coming months, energy companies are expected to benefit from elevated prices through 2026, especially as much infrastructure and strategic reserves have been damaged, keeping energy stocks attractive.
See More
Energy Stocks Thrive Amid Oil Price Surge
- Strong Energy Sector Performance: In March, energy stocks collectively rose by approximately 11.9%, making it the only sector of the S&P 500 to gain, indicating robust industry performance amid rising oil prices, with expectations for continued benefits into 2026.
- Context of Rising Oil Prices: The price of Brent crude has surged by 55% since late February due to the Middle East war and the closure of the Strait of Hormuz, which has directly contributed to a more than $1 increase in U.S. gasoline prices, reaching an average of about $4 nationwide.
- Performance of Major Companies: Companies like Occidental Petroleum (OXY) saw a 26% increase in March, Marathon Petroleum (MPC) rose by 24.8%, and ExxonMobil (XOM) increased by 13.3%, highlighting the significant profitability of energy firms in the current market environment.
- Future Outlook: While the market anticipates a potential decline in oil prices over the coming months, energy companies are expected to achieve better-than-expected earnings in 2026, as damage to infrastructure and reduced strategic reserves will likely keep oil prices elevated for an extended period.
See More
US Stocks Rise on Optimism Over Middle East Conflict Resolution
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- Strong Economic Data: The US ADP employment change for March increased by 62,000, surpassing expectations of 40,000, while February retail sales rose by 0.6% month-over-month, indicating robust economic recovery that may influence Federal Reserve policy decisions.
- Interest Rate Outlook: Despite a mere 1% chance of a 25 basis point rate hike at the upcoming FOMC meeting, hawkish comments from St. Louis Fed President raised concerns about inflation and employment risks, potentially affecting investor sentiment and market dynamics.
- Divergent Stock Performances: Target Hospitality surged by over 37% after securing a multi-year contract worth over $550 million, while Nike fell by more than 13% due to revenue forecasts indicating a decline, highlighting varied market reactions to company-specific news.
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- Tobacco Product Delay: Philip Morris International's shares dropped more than 5% after the FDA delayed authorization for nicotine pouch sales, which may hinder the company's future market expansion plans, particularly among new user demographics.
- Semiconductor Buyback Plan: Intel announced a $14.2 billion buyback of a 49% stake in its Ireland Fab 34 joint venture, resulting in a 9% increase in shares, with funding sourced from cash on hand and approximately $6.5 billion in new debt, expected to strengthen its position in the global semiconductor market.
See More
U.S. Stocks Rise on Easing War Fears and Falling Oil Prices
- Market Recovery: The S&P 500 rose by 0.72% to 6,575.32, while the Nasdaq Composite climbed 1.16% to 21,840.95, reflecting optimism over easing Iran war fears, although the S&P 500 is still down 4% year-to-date.
- Semiconductor Strength: Micron Technology surged 8.96% and Intel increased by 8.78%, with Intel announcing a buyback of its stake in an Irish chip plant, boosting confidence in the semiconductor sector.
- Airline Stock Resurgence: American Airlines Group and Delta Air Lines gained 3.63% and 2.17%, respectively, indicating a cautious return of investor confidence in travel stocks despite ongoing market uncertainties.
- Energy Stock Volatility: Occidental Petroleum and Chevron fell by 4.17% and 4.59%, respectively, yet both have seen significant gains this year; oil prices dipped below $100 intraday, closing down nearly 15%, which may exert inflationary pressure on the stock market.
See More
U.S. Stocks Rise as Iran War Fears Ease
- Market Rally: The S&P 500 rose by 0.72% to 6,575.32, and the Nasdaq Composite climbed 1.16% to 21,840.95, reflecting optimism as fears over the Iran war eased.
- Semiconductor Strength: Micron Technology and Intel saw significant gains, with Intel announcing a buyback of its stake in an Irish chip plant, reinforcing its competitive position in the industry.
- Airline Stocks Recovery: American Airlines Group and Delta Air Lines finished in the green, indicating a cautious return of investor confidence in travel stocks, despite ongoing market uncertainties.
- Energy Stock Volatility: While Occidental Petroleum and Chevron experienced sharp declines, they have surged significantly this year, highlighting ongoing market concerns regarding energy prices.
See More
Energy Stocks Surge Amid Market Decline
- Energy Sector Outperformance: In March, the energy sector of the S&P 500 index rose approximately 11.9%, contrasting sharply with declines in all other sectors, highlighting the resilience of the energy industry amid market turmoil.
- Oil Price Surge Impact: The price of Brent crude oil has surged 55% since late February due to the Middle East war and the closure of the Strait of Hormuz, directly driving stock prices higher for energy companies, with Occidental Petroleum up 26% and Marathon Petroleum up 24.8%.
- Rising Gasoline Prices: The average price of regular gasoline in the U.S. has climbed over $1 to about $4, significantly boosting profits for energy companies and further solidifying their market position.
- Optimistic Future Outlook: While the market anticipates a potential decline in oil prices in the coming months, energy companies are expected to benefit from elevated prices through 2026, especially as much infrastructure and strategic reserves have been damaged, keeping energy stocks attractive.
See More
Energy Stocks Thrive Amid Oil Price Surge
- Strong Energy Sector Performance: In March, energy stocks collectively rose by approximately 11.9%, making it the only sector of the S&P 500 to gain, indicating robust industry performance amid rising oil prices, with expectations for continued benefits into 2026.
- Context of Rising Oil Prices: The price of Brent crude has surged by 55% since late February due to the Middle East war and the closure of the Strait of Hormuz, which has directly contributed to a more than $1 increase in U.S. gasoline prices, reaching an average of about $4 nationwide.
- Performance of Major Companies: Companies like Occidental Petroleum (OXY) saw a 26% increase in March, Marathon Petroleum (MPC) rose by 24.8%, and ExxonMobil (XOM) increased by 13.3%, highlighting the significant profitability of energy firms in the current market environment.
- Future Outlook: While the market anticipates a potential decline in oil prices over the coming months, energy companies are expected to achieve better-than-expected earnings in 2026, as damage to infrastructure and reduced strategic reserves will likely keep oil prices elevated for an extended period.
See More
US Stocks Rise on Optimism Over Middle East Conflict Resolution
- Market Rally: The S&P 500 Index rose by 0.97%, the Dow Jones Industrial Average by 0.86%, and the Nasdaq 100 by 1.45%, reflecting growing investor confidence amid optimism that the Middle East conflict may soon conclude, which could stabilize global markets.
- Strong Economic Data: The US ADP employment change for March increased by 62,000, surpassing expectations of 40,000, while February retail sales rose by 0.6% month-over-month, indicating robust economic recovery that may influence Federal Reserve policy decisions.
- Interest Rate Outlook: Despite a mere 1% chance of a 25 basis point rate hike at the upcoming FOMC meeting, hawkish comments from St. Louis Fed President raised concerns about inflation and employment risks, potentially affecting investor sentiment and market dynamics.
- Divergent Stock Performances: Target Hospitality surged by over 37% after securing a multi-year contract worth over $550 million, while Nike fell by more than 13% due to revenue forecasts indicating a decline, highlighting varied market reactions to company-specific news.
See More
Eli Lilly Gains FDA Approval, Shares Rise
- FDA Drug Approval: Eli Lilly's once-daily GLP-1 pill Foundayo received FDA approval, leading to a 4% rise in shares, which will enhance the company's competitive edge in the obesity treatment market and drive future sales growth.
- Cybersecurity Incident Impact: Hasbro's shares fell over 4% due to a cybersecurity incident involving unauthorized network access, with the company investigating the full impact and implementing protective measures, potentially increasing operational costs in the short term.
- Tobacco Product Delay: Philip Morris International's shares dropped more than 5% after the FDA delayed authorization for nicotine pouch sales, which may hinder the company's future market expansion plans, particularly among new user demographics.
- Semiconductor Buyback Plan: Intel announced a $14.2 billion buyback of a 49% stake in its Ireland Fab 34 joint venture, resulting in a 9% increase in shares, with funding sourced from cash on hand and approximately $6.5 billion in new debt, expected to strengthen its position in the global semiconductor market.
See More
