To The Moon

According to the latest SEC filings, $Berkshire Hathaway(BRK.B)$ bought 9.55 million shares of $Occidental(OXY)$ from June 17-22 at a cost of $54.96-$56.42 per share. Based on the average price, Buffett spent roughly $530 million.

From March to May this year, Berkshire also made large purchases of $Occidental(OXY)$ , making it the 6th largest position. $Occidental(OXY)$ also proves itself, as shares of $Occidental(OXY)$ and $Chevron(CVX)$ rose 134% and 47%, respectively in Q1, when US stocks took a big dive.

However, since June, both $Occidental(OXY)$ and $Chevron(CVX)$ have suffered sharp declines. On June 22, $Light Crude Oil - main 2208(CLmain)$ prices and the oil sector plunged, with $Occidental(OXY)$ and $Chevron(CVX)$ down 3.63% and 4.35%, respectively.

Is it a good opportunity to buy the dip?

Bearish

1. In order to reduce inflation, the Biden administration has released large amounts of oil reserve to lower gas prices.

On June 22, Biden called on Congress to suspend the federal gas tax as he tries to quell the rapid surge in prices at the pump.

2. In addition, oil prices continue to fall as the market continues to warn of a recession in the U.S. on concerns that a slowing economy is hurting energy consumption.

3. Citigroup analysts said:

The market will continue to shake, and oil prices are expected to continue to fall in 2023.

Oil prices should fall to more than $ 80 by the fourth quarter.

Bullish

1. The International Energy Agency (IEA) released its World Energy Investment 2022, which expects global energy investment to grow 8% to $2.4 trillion in 2022. Net profits for the global oil and gas industry will jump to $4 trillion in 2022, twice as much as in 2021.

2. $Exxon Mobil(XOM)$ Chief Executive Officer Darren Woods said Tuesday that the global oil market is likely to remain tight for the next 3 to 5 years.

3. Russell Hardy of Vitol Group (Vitol), the world's largest independent oil trader, holds the same opinion.

Unless demand weakens, oil prices are unlikely to fall.

Conclusion

In the short term, bearish sentiment is evident for oil and gas stocks, but in the long term, energy stocks remain high-quality value stocks.

So, Tigers, what's your opinion?

Do you think it is a good time to get into energy stocks?

Will you follow Buffett to bottom $Occidental(OXY)$ ?

Click here to enter the topic~

Hello, tigers! I officialy change my name to @Tiger_chat .

I'm talkative and always find new topics in the stock market.

Follow me and join my discussion everyday!