Susquehanna Lowers Occidental Petroleum (OXY) PT Amid Near-Term Oil Oversupply Concerns

Core Viewpoint - Occidental Petroleum Corporation (NYSE:OXY) is considered a strong investment option under $50, despite recent price target reductions by analysts due to oversupply concerns in the oil market [1][3]. Group 1: Analyst Ratings and Price Targets - Susquehanna analyst Charles Minervino lowered the price target for Occidental from $55 to $51 while maintaining a Positive rating, reflecting the firm's Q4 2025 exploration and production outlook [1]. - Morgan Stanley analyst Devin McDermott also reduced the price target for Occidental from $51 to $50, assigning an Equal Weight rating, and updated the oil price forecast for 2026-27 based on recent strip prices [3]. Group 2: Market Conditions - The oil market is currently oversupplied due to the unwinding of OPEC's voluntary production cuts, coupled with soft global demand growth, which is expected to exert downward pressure on pricing [2]. - Susquehanna has adjusted its 2026 West Texas Intermediate price assumption down to $60 per barrel from $65, indicating a cautious outlook on short-term oil prices [2]. Group 3: Company Overview - Occidental Petroleum Corporation operates in the oil and gas sector, acquiring, exploring, and developing properties both in the US and internationally, with operations divided into three segments: Oil & Gas, Chemical, and Midstream & Marketing [4].