Buffett's $13-B Bet On Oxy Turns Sour As Oil Prices Hit 3-Year Low

Occidental Petroleum shares have fallen by 29% since mid-April, affecting Warren Buffett's stake in the company.

Buffett went on a buying spree of Occidental Petroleum shares in June, purchasing millions of shares around the $60 level. I Photo: Oxy Facebook

This decline mirrors a 23% drop in crude oil prices due to concerns about demand and excess supply, as reported by Matthew Fox for Business Insider.

Berkshire Hathaway's $13 billion stake in Occidental Petroleum may now be underwater, based on estimates. A steady drop in oil prices this year has caused one of Warren Buffett's significant stock bets to falter.

Oil has been under pressure due to demand concerns linked to a cooling U.S. economy and oversupply, spurred by record production from U.S. oil firms.

Berkshire Hathaway has been accumulating its stake in the oil producer since early 2022. Buffett went on a buying spree of Occidental Petroleum shares in June, purchasing millions of shares around the $60 level.

The conglomerate currently holds a 29% stake in the company, valued at approximately $13 billion.

The $55-$60 price range had acted as a floor for Occidental Petroleum stock since Buffett began buying it in 2022, but for the first time in more than two years, that floor has been breached.