Warren Buffett’s Berkshire Hathaway just snapped up more Occidental Petroleum shares, pushing the legendary investor’s stake in the oil company to just over 25%.
Buffett’s conglomerate purchased another 2.1 million shares of Occidental in the past week when the stock traded at $57.89, an amount worth $123 million in total, according to a recent Securities and Exchange Commission filing.
Berkshire now owns 224 million shares of the oil producer worth $13 billion. That represents just over quarter of Occidental’s entire value, with a total market cap of $52.56 billion.
Occidental shares traded at $58.52 on Friday, with the stock down 4% from levels at the start of the year. Meanwhile, Berkshire Hathaway Class A shares traded around $515,550, with the stock up 9% year-to-date. Class B shares were trading at $339.59.
Buffett has been vocal about his bullishness on Occidental Petroleum, snapping up big chunks of the stock over the past year as oil and natural gas prices skyrocketed in the aftermath of Russia’s invasion of Ukraine.
And though Buffett has said he has no interest in taking over Occidental, Berkshire gained approval from regulators to potentially own up to 50% of the company last August.
Energy prices, meanwhile, have eased from their highs last summer, but analysts have said prices are in for another surge later in the year, especially if China’s economic reopening leads to a big upswing in oil demand.
Revived demand in China could lead Brent crude, the international benchmark, to soar close to $100 a barrel, though China has seen a disappointing reopening so far since dialing back its zero-COVID policies. Real estate and factory activity in the country have slowed significantly, and a massive $88 billion trade surplus in early 2023 suggests domestic demand is weak, experts say.
West Texas Intermediate crude traded around $70.61 a barrel on Friday, while Brent traded around $75.17 a barrel.
