Why Occidental Petroleum (OXY) Stock Is Trading Higher Today

Occidental Petroleum Corp OXY shares are trading higher by 4% to $66.40 during Tuesday's session. Shares of several oil companies are trading higher after OPEC maintained its growth forecasts and forecasted a supply shortfall.

According to a report by Bloomberg, global oil markets are anticipated to face a significant supply deficit exceeding 3 million barrels per day in the next quarter, possibly the largest in over a decade.

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Bloomberg says this is mainly due to Saudi Arabia's extension of production cuts. Despite tightening market conditions, Saudi Arabia has prolonged an additional 1 million-barrel-per-day output reduction until year-end.

OPEC's forecasts indicate a sharp drop in world oil inventories, with a projected decline of around 3.3 million barrels per day in the next three months, potentially the largest since 2007, as analyzed by Bloomberg based on OPEC data.

According to data from Benzinga Pro, OXY has a 52-week high of $76.11 and a 52-week low of $55.51.