Warren Buffett bought more Occidental Petroleum (OXY) after his share Berkshire Hathaway (BRKB) obtained regulatory approval to purchase up to 50%. OXY stock rose slightly late Friday.
Berkshire Hathaway now owns 26.8% of Occidental Petroleum, according to a regulatory report Friday night. It came exactly one month after Warren Buffett announced that its stake in OXY had reached 20.2%. Crossing the 20% ownership level means Berkshire Hathaway can record Occidental’s earnings on its books.
The Federal Energy Regulatory Commission has given Berkshire Hathaway permission to buy up to 50% of Occidental Petroleum. This is according to an order announced on August 19. Berkshire submitted the application on July 11.
There is speculation that Berkshire may choose to buy the entire Occidental The Wall Street Journalciting sources, reported last month that Warren Buffett is unlikely to do so.
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OXY stock rises on Buffett’s purchases
OXY stock was up 1.6% in late trading on Friday. Over the course of the week, Occidental Petroleum fell 4.6% to 65.61, although it found support at the 50-day moving average.
OXY stock broke from A cup base with handle Strongly on August 19th, after news that Buffett had agreed to buy 50% of the company. Shares soared to a record high of 77.13 on August 29, but have now eclipsed all those gains from 66.26 buy point.
Occidental stock has held up better than many oil producers over the summer, thanks to Warren Buffett’s steadily adding to the stock. But OXY stock came under pressure as crude oil prices fell dramatically.
Meanwhile, BRKB stock rose 2.9% to 285.77 last week. It came after three weekly declines, to start a major reversal from the 200-day moving average.
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