Check out the trading idea of the week below, by your friendly, neighbourhood market analyst!
Trading Idea of the Week
(NYSE:OXY - Occidental Petroleum Corp - BULLISH BIAS
- Key levels on the chart - consider taking trades from key support/resistance zones.
- Occidental Petroleum is a US oil giant focused predominantly on shareholder returns through dividends, share buybacks and debt repayment.
Sky high oil prices and tight supply make oil an appealing investment, with OPEC+ reducing global oil supply by 2 million barrels per day, creating higher demand with lower supply, sending oil prices higher with the aim to place a restrictive floor around the $80 mark.
A decade of low oil prices of ever-increasing ESG concerns has caused a structural undersupply of fossil fuels. Conflict in Eastern Europe has put further pressure on oil supply across Europe.
- Increased oil and gas pricing globally has made Occidental a cash printing machine in 2022.