Occidental Petroleum achieves oil price decline against the trend, global natural gas prices nearly halved year-on-year
- Shale oil producer Occidental Petroleum announced on Friday that despite Middle East tensions driving up benchmark crude oil prices, its average realized global oil price in the first quarter decreased by about 1.6% year-on-year to $69.91 per barrel, compared to $71.07 per barrel in the same period last year. Institutional data shows that the average benchmark price of Brent crude oil in the first quarter was $89.62 per barrel, higher than $75.16 per barrel in the same period last year.
- The divergence between realized oil prices and benchmark oil prices reflects the pressure the company is facing in aspects such as sales pricing, regional price differentials, and product mix. The Strait of Hormuz, which channels one-fifth of the world’s energy flow, is effectively closed; the war between the US and Israel versus Iran has caused massive energy supply disruptions. However, Occidental Petroleum has not fully benefited from the rise in benchmark oil prices.
- The company's average realized global natural gas price fell from $2.30 per million cubic feet in the same period last year to $1.20, a drop of nearly half. The global average realized price for natural gas liquids fell from $25.94 per barrel to $18.99 per barrel, a decrease of 27%.
- Market participants have noted that the decline in Occidental Petroleum’s realized prices contrasts with overall industry trends. In the future, attention should be paid to whether the company fails to fully benefit from rising benchmark prices due to factors such as transportation bottlenecks, contract structures, or imbalances in regional market supply and demand. The sharp drop in natural gas and natural gas liquids prices has further intensified pressure on its revenue side.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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