Who doesn’t know the name Warren Buffett in the stock market? Whenever he invests in a company, investors are extremely cautious and often consider it a significant sign. In recent years, the company he has placed the most trust in is Occidental Petroleum, known to most as OXY Stock. The question arises: Is OXY Stock worth buying in 2025, or is it still too risky?
Occidental Petroleum is a major US oil and gas company headquartered in Houston, Texas. It is not limited to oil and gas, but is also active in the chemical business, known as OxyChem. OxyChem manufactures plastics, chlorine, and a variety of industrial chemicals. This means the company is not solely dependent on oil but also has a diversified business portfolio.
Speaking of investments, Berkshire Hathaway, Warren Buffett’s company, has placed a large bet on OXY Stock. Buffett spent billions of dollars to acquire a significant stake in the company and has continued to increase it. Market experts believe that when a figure like Buffett places such strong confidence in an oil company, it indicates both its fundamentals and future potential.
OXY stock’s performance has been closely linked to oil prices over the past few years. Whenever crude oil prices rose, OXY stock also saw gains. Several surges in oil prices in 2024 benefited the company, delivering good returns to investors. Conversely, when oil prices fell, OXY stock also declined. This clearly demonstrates that the stock’s direction is heavily dependent on the global energy market.
OXY Stock Performance Highlights
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When crude oil prices rose, OXY stock also saw gains.
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Investors should get good returns due to several increases in oil prices in 2024.
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When oil prices fell, OXY stock went down too.
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It’s clear that the direction of OXY stock depends heavily on the global energy market.
Financially, Occidental has taken significant steps to reduce its debt in recent years. The company incurred significant debt following the acquisition (Anadarko deal), but recent results have demonstrated that management is continuously working to pay down debt and strengthen its balance sheet. The company has also benefited investors through policies such as dividends and share buybacks.
The biggest positive factor for OXY stock in 2025 is that the US is rapidly moving towards energy independence, and oil demand remains strong. Furthermore, the company is working on carbon capture projects, which could make it a part of the energy transition, rather than just a traditional oil company. This factor is attractive to long-term investors.
However, there are risks involved. The biggest risk is the volatility of oil prices. If a global recession occurs or energy demand suddenly decreases, it will directly impact OXY stock. Another risk is that the world is gradually moving towards renewable energy, which could pose a significant challenge for companies like OXY in the long run.
Market analysts believe most reports place OXY stock in the “Buy” or “Hold” category. Some experts believe its price target could be between $70 and $80 in the coming months, provided oil prices remain stable. However, some analysts are cautious and believe the stock could suffer a setback if crude prices fall significantly.
OXY Stock Analyst Ratings
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Market analysts mostly believe that OXY stock falls into the “Buy” or “Hold” category.
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Some experts believe the stock’s price target could be between $70-$80 if oil prices remain stable.
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But some analysts are cautious and believe the stock could suffer losses if crude prices fall.
Simply put, Warren Buffett’s support of OXY stock is a significant sign of confidence. The company’s business model is robust, and units like OxyChem further stabilize it. Furthermore, its carbon capture projects could support significant growth in the future. However, one thing must be kept in mind: this stock is heavily dependent on oil prices, so occasional fluctuations are normal.
If you’re considering OXY stock in 2025, you should approach it from a balanced perspective. Volatility will persist in the short term, but in the long term, if oil demand remains strong and the company successfully pursues its projects, this stock can generate excellent returns for investors.
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