Occidental Petroleum Stock Is Slipping Tuesday: What's Going On?

Occidental Petroleum Corp OXY shares are trading lower as oil prices fall Tuesday amid Iran-Israel ceasefire efforts.

The Details: According to Axios, Iran and Israel have agreed to a ceasefire after 12 days of fighting. The deal was reportedly brokered by President Donald Trump, with support from Qatar.

Trump congratulated both countries on the ceasefire when he announced the agreement late Monday via Truth Social.

“CONGRATULATIONS TO EVERYONE! It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE,” Trump wrote in the post.

The agreement caused oil prices to fall with U.S. crude dropping close to 5.5% and Brent crude, the international benchmark, falling nearly 6%. Oil prices had gone up near the start of the conflict due to concerns about supply disruptions in the Middle East. Now that tensions are easing, traders expect oil to keep flowing, which is bringing prices down.

Lower oil prices usually lead to lower profits for oil and gas companies. That appears to be why energy stocks like Occidental are falling on Tuesday.

Trump also said China can continue buying oil from Iran. The announcement added even more pressure to oil prices as it means more supply could stay on the global market. With both the ceasefire and Trump's statement signaling steady oil availability, investors appear to be selling energy stocks across the board.

See Also: Crude Oil Falls Sharply; US Current Account Deficit Widens In Q1

OXY Price Action: At the time of writing, Occidental shares were down 3.59% at $42.37, according to data from Benzinga Pro.

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