OXY Stock Forecast 2025: Should You Invest in Occidental Petroleum?

OXY Stock Forecast 2025: Should You Invest in Occidental Petroleum?

Energy stocks have always played a vital role in the U.S. markets, and few companies highlight this better than Occidental Petroleum (NYSE: OXY). Recently, the stock has gained attention not only for its fundamentals but also because Warren Buffett’s Berkshire Hathaway holds a massive position. With oil markets facing volatility and investors wondering about energy’s role in a greener future, OXY has become one of the most talked-about names in 2025.

But is OXY still worth buying today? Or is it time to look elsewhere? Let’s break down Buffett’s bet, recent performance, and what analysts expect for Occidental Petroleum going forward.

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Warren Buffett’s Billion-Dollar Bet on OXY

If you follow Buffett, you know he doesn’t buy stocks casually. He once explained that he invested in Occidental after carefully reading the company’s annual reports in 2019. What impressed him was the management’s discipline and long-term vision. Over the next few years, Berkshire Hathaway built up ownership of more than 25% of OXY’s shares, plus warrants to buy even more.

By 2024, Buffett went further, saying Berkshire expects to hold OXY stock “indefinitely.” That’s rare praise, especially since Buffett usually favors sectors like financials and consumer goods over energy. His involvement alone gave Occidental a credibility boost and kept investors paying attention.

Will Buffett Sell in 2025?

Even with his positive comments, analysts suggest Berkshire might trim its OXY holdings in 2025. The move wouldn’t necessarily reflect a loss of faith—it could be about portfolio balance and freeing cash for other investments.

Still, if Buffett sells, the market could panic. But history shows OXY’s stock price has followed crude oil prices more closely than Buffett’s personal trading decisions. In other words, if oil goes up, OXY goes up—regardless of Buffett.

Recent Stock Performance

Looking at the numbers, OXY’s performance has been mixed:

In the past month, OXY stock dropped around -7.10%.

For October 2025, analysts project a trading range between $44.07 and $48.80, with an average near $45.95.

That average would be -3.48% lower than the previous month.

However, the potential return from this level could offer investors 10.32% ROI.

This highlights OXY’s volatility. Short-term traders may find opportunities, but long-term investors must be comfortable with swings tied to oil cycles.

👉 You can check OXY’s live updates on the Nasdaq stock page.

Oil Prices: The Real Driver of OXY

Unlike tech giants such as Apple (AAPL) or Nvidia (NVDA), OXY’s stock doesn’t jump or fall on earnings beats. Instead, it is tied to the oil market.

Whenever WTI crude oil climbs, Occidental tends to rally. When crude weakens, OXY almost always drops. That makes OXY essentially a bet on global energy demand, OPEC+ production decisions, and U.S. shale output.

This also means OXY’s risk is external. For example, geopolitical events or a sudden shift in U.S. energy policy can swing the stock quickly. Investors who buy OXY should understand they are investing in oil’s future as much as in Occidental’s management.

What Analysts Are Saying

Here’s where things get interesting. The Motley Fool Stock Advisor team recently released their list of the 10 best stocks to buy now—and Occidental Petroleum wasn’t on it.

That doesn’t mean OXY is a poor choice. The Motley Fool often prioritizes high-growth sectors like technology. For example:

Netflix was once on their list in 2004. A $1,000 investment then would now be worth $631,456.

Nvidia made the list in 2005. That same $1,000 would now equal $1,147,755.

Clearly, OXY isn’t built for tech-style exponential growth. Instead, it offers steady exposure to the energy sector, backed by Warren Buffett’s confidence.

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Is OXY Stock Worth Buying in 2025?

To answer that, let’s weigh both sides.

On the positive side, Buffett’s endorsement, projected 10.32% ROI, and global oil demand make OXY an attractive long-term investment. On the other hand, the stock is vulnerable to oil price shocks and lacks the hyper-growth potential seen in technology stocks.

If your goal is stability and income from energy exposure, OXY fits well. But if you’re looking for the next Tesla (TSLA) or Nvidia, Occidental probably isn’t it.

Risks and Opportunities Ahead

Every stock has risks, and OXY is no exception.

Volatility: Prices swing with oil demand and supply changes.

Buffett Factor: A partial Berkshire sell-off could temporarily hurt investor confidence.

Renewable Shift: The world is transitioning toward cleaner energy, which poses long-term risks for traditional oil companies.

But there are opportunities too. OXY is a leader in carbon capture projects and continues to expand its shale drilling operations. If oil demand stays strong, OXY could enjoy years of steady growth while diversifying into cleaner technologies.

Final Thoughts

Occidental Petroleum is not a “get-rich-quick” stock. It is a cyclical play on oil prices and an energy company that Buffett himself believes in long term. For investors who want exposure to fossil fuels with the security of a major investor like Berkshire behind them, OXY remains a compelling choice in 2025.

But here’s the key takeaway: OXY is about patience and timing. If you can stomach the volatility and focus on long-term demand for oil, the stock may reward you. If not, diversifying into tech or growth sectors might balance your portfolio.

FAQ: OXY Stock in 2025

1. Why does Warren Buffett own OXY stock?

Because he believes in Occidental’s management, structure, and long-term value in the energy market.

2. Will Buffett sell OXY in 2025?

It’s possible. Analysts suggest Berkshire might trim holdings, but Buffett remains generally bullish.

3. Does OXY follow earnings results?

Not directly. Its stock performance is closely tied to WTI crude oil prices rather than quarterly reports.

4. Is OXY undervalued right now?

After a -7.10% decline last month, analysts project a 10.32% ROI potential, suggesting some undervaluation.

5. Should beginners invest in OXY?

Yes, but only if they understand the risks tied to oil volatility. It’s better suited for medium- to long-term investors.