Warren Buffett-backed Occidental Petroleum (OXY) approached a buy point Tuesday as energy stocks appear to be picking up steam with oil prices trading solidly above $80 per barrel. Meanwhile, OPEC+ is set to assess market conditions this week, but expectations are that current output policies will remain unchanged.

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U.S. crude futures advanced to above $84.50 per barrel on Tuesday, topping $85 a barrel intraday for the first time since late October.

Brent, meanwhile, traded above $88 per barrel, approaching a six-month high. The international benchmark rose amid prospects of higher demand and geopolitical tensions after the Israeli airstrike on Iran’s embassy in Syria.

Oil prices have advanced steadily since early February as indications point toward growing demand in China.

China’s manufacturing activity expanded for the first time in six months in March, with the official purchasing managers’ index (PMI) coming in at 50.8, up from 49.1 a month earlier, according to figures published Sunday. This is a marked turn from the previous four months as concerns about China’s economy weighed on oil prices.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, including Russia, known as OPEC+, will hold a joint ministerial monitoring committee meeting on Wednesday to review the market and the implementation of oil output cuts. OPEC+ is unlikely to make any production policy changes until at least June, according to Reuters.

Members of the oil cartel earlier this month agreed to extend voluntary output cuts of 2.2 million barrels per day to the end of the second quarter to support the market.

Warren Buffett, Energy Stocks And Oil Prices

With oil prices remaining well above $80 per barrel, energy stocks are beginning to advance again after suffering at the end of 2023.

On Tuesday, Occidental Petroleum (OXY), a Warren Buffett favorite, edged up 1.3% to 67.27 during Tuesday market action. Intraday, OXY stock briefly topped a saucer base with an official 67.67 buy point, according to MarketSurge.

The 17 stocks in the IBD-tracked Oil & Gas-International Exploration & Production industry group has gained 10% in 2024.

ConocoPhillips (COP) is in a buy zone, slightly extended above an official 127.35 entry. Meanwhile, Hess (HES) — as it waits for its consolidation with Chevron (CVX) to be finalized — is currently 2% above a 152.13 buy point from a cup-with-handle base.

Supermajor Chevron, another Warren Buffett stock, has formed a saucer base with a 171.70 buy point. Chevron stock is working on its third consecutive monthly advance but is currently around 8% below its buy point. CVX stock is arguably still in range from an early entry around 157 from some consolidation above the 200-day line.

Exxon Mobil (XOM) is also in a saucer base and is trading 2% below an official 120.70 entry, according to MarketSurge. XOM has gained ground for three straight months, including an 11% advance in March.

Exxon and Chevron are part of the IBD-tracked Oil & Gas Integrated industry group. The 22 stocks that make up that group have collectively gained 9.7% this year.

Occidental stock has an 18 Composite Rating out of 99. The Warren Buffett stock also has a 26 Relative Strength Rating and a 9 EPS Rating.

Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.

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