Occidental Petroleum received lower prices for oil it produced in the fourth quarter

Occidental Petroleum, a U.S. shale oil producer, said that the prices received for oil produced in the fourth quarter of 2014 were lower than those for the previous three months due to a weakening global demand.

The crude oil prices fell by about 6% sequentially in the fourth quarter of last year due to a patchy recovery from the pandemic, China's slow economy, and an excess supply worldwide. Prices dropped nearly 12% compared to a year earlier.

Exxon Mobil, a larger competitor and industry leader, warned earlier this week that changes in oil price and a decline in profits from refining would reduce its earnings in the fourth-quarter by approximately $1.75 billion.

Occidental reported its realized price at $69.73 per barrel, compared to $75.33 a barrel in the third quarter.

A 30% increase in the price of natural gas in the United States during the third quarter should cushion some of this impact.

Occidental realized an average price of $1.41 per 1,000 cubic feet (Mcf) for the fourth quarter. In the previous quarter, this was 76c per Mcf.

According to estimates compiled at LSEG, analysts expect Occidental will post a profit per share of 72 cents for the fourth quarter. The total for the year is expected to be $3.42.

According to its website, the shale oil producer will announce its results on February 19. Reporting by Vallari Shrivastava, Bengaluru. Editing by Tasim Zaid and Devika Syamnath

(source: Reuters)