Warren Buffett’s Top Stock Approaching Buy Zone as Oil Prices Inch Towards $90

Warren Buffett’s Top Stock Approaching Buy Zone as Oil Prices Inch Towards

Supported by Warren Buffett Western oil (OXY) approached a buy point Tuesday as energy stocks appear to be gaining strength with oil prices trading solidly above $80 a barrel. Meanwhile, OPEC+ is expected to assess market conditions this week, but current production policies are expected to remain unchanged.


U.S. crude futures rose above $84.50 a barrel on Tuesday, surpassing $85 a barrel intraday for the first time since late October.

Brent, meanwhile, was trading above $88 a barrel, approaching its highest level in six months. The international benchmark rose amid prospects for increased demand and geopolitical tensions after the Israeli airstrike on the Iranian embassy in Syria.

Oil prices have risen steadily since early February amid indications of growing demand in China.

Chinese manufacturing activity grew for the first time in six months in March, with the official Purchasing Managers’ Index (PMI) coming in at 50.8, up from 49.1 a month earlier, figures showed Sunday. It was a marked turnaround from the previous four months, as concerns about China’s economy weighed on oil prices.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, will hold a follow-up joint ministerial meeting on Wednesday to review the market and implementation of production cuts oil. OPEC+ is unlikely to change its production policy until at least June, according to Reuters.

Oil cartel members agreed earlier this month to extend voluntary production cuts of 2.2 million barrels per day until the end of the second quarter to support the market.

Warren Buffett, energy stocks and oil prices

While oil prices remain well above $80 per barrel, energy stocks are starting to rise again after suffering at the end of 2023.

Tuesday, Western oil (OXY), a Warren Buffett favorite, edged up 1.3% to 67.27 on Tuesday. market action. Intraday, OXY stock briefly rose above a saucer base with an official 67.67 point of purchaseaccording to Market increase.

The 17 actions monitored by the IBD Oil and Gas – International Exploration and Production the industrial group gained 10% in 2024.

ConocoPhillips (COP) is in a buy zone, slightly extended above an official entry of 127.35. In the meantime, Hesse (HE IS) — pending its consolidation with Chevron (CLC) to be finalized — is currently 2% above a 152.13 buy point from a cup base with handle.

Supermajor Chevron, another Warren Buffett stock, formed a saucer base with a buy point of 171.70. Chevron stock is working on its third straight monthly advance but is currently about 8% below its buy point. CVX stock is arguably still in range for early entry around 157 after some consolidation above the 200-day line.

Exxon Mobile (XOM) is also in a saucer base and trading 2% below an official entry of 120.70, according to MarketSurge. XOM has gained ground for three consecutive months, including an 11% gain in March.

Exxon and Chevron are part of IBD tracking Integrated Oil and Gas Industrial Group. The 22 stocks that make up this group have collectively gained 9.7% this year.

Western stock has an 18 Composite score out of 99. The Warren Buffett stock also has a 26 Relative Strength Rating and a 9 EPS rating.

Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.


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