Occidental oil prices jump as supply concerns lift crude
OXY•Occidental Petroleum said its worldwide average realized oil price rose 32.6% year over year to $85.91 per barrel in the third quarter, while Brent averaged $89.27 per barrel, up 31.2%.
1. Realized oil prices rise
Occidental Petroleum reported a third-quarter worldwide average realized oil price of $85.91 per barrel, compared with $64.78 a year earlier. Worldwide realized natural gas liquids prices rose nearly 26% to $24.63 per barrel, while realized natural gas prices averaged $1.69 per million cubic feet, compared with positive $1.57 a year earlier.
2. Production constraints
The company temporarily curtailed production at certain Gulf of America facilities in September because of a third-party gas pipeline constraint and maintenance activities. Production has been partially restored, with the remaining impacted production expected to return as the pipeline constraint is resolved.
3. Crude supply concerns
Brent crude averaged $89.27 per barrel during the July-September quarter, up 31.2% year over year. The article links higher crude prices to supply concerns and disrupted flows through the Strait of Hormuz, which carries about a fifth of the world's oil.
