Occidental Reports Higher Q1 Prices As Tariff Tensions Shake Oil Market

Occidental Petroleum OXY announced on Wednesday that it realized higher oil and gas production prices in the first quarter of 2025 than in the previous quarter.

The company reported that its worldwide average realized oil price rose to $71.07 per barrel, up from $69.73 in the final quarter of 2024. Natural gas prices also significantly increased, averaging $2.30 per thousand cubic feet, compared to $1.26 previously.

The average realized price for natural gas liquids climbed approximately 19%, rising from $21.80 to $25.94 per barrel.

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Last week, Exxon Mobil XOM projected modest first-quarter earnings growth, driven by shifts in energy prices and industry margins. The company expects oil and gas price changes to increase Upstream earnings by up to $400 million, while improved industry margins could contribute an additional $300 million to $700 million to Energy Products. Timing effects are also anticipated to add up to $0.5 billion each to Upstream and Energy Products.

On Wednesday, President Donald Trump announced a 90-day suspension of tariffs for non-retaliating countries. This sparked a broad market rally, boosted oil and gas stocks, and lifted the outlook for crude demand.

According to CNBC, the Trump administration imposed a steep 145% tariff on Chinese imports on Thursday, straining an already contentious relationship between Washington, D.C. and Beijing.

WTI crude fell to $60 per barrel last week—its lowest price since April 2021. Goldman Sachs raised U.S. recession odds to 45%. Meanwhile, OPEC+ unexpectedly hiked output, adding pressure and fueling industry criticism of the unpredictable trade policy.

Price Action: OXY shares were trading lower by 8.35% at $36.87 at the last check Thursday.

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