Michael McCaul’s Decision to Sell Occidental Petroleum Stock Sparks Investor Concerns

Michael McCaul's Strategic Sale of Occidental Petroleum Shares

Michael McCaul, a Republican Congressman from Texas, has recently offloaded a significant portion of Occidental Petroleum (NYSE: OXY) shares, a choice that resonates amid the stock's worrying performance. Data from Finbold’s U.S. Politician Insider Stock Trading Tracker indicates that McCaul disclosed a sale valued between $15,001 and $50,000 on December 18, 2024, executed on November 19, 2024.

On the transaction date, Occidental was trading at $50.50. By the date of disclosure, the price had dropped to $46.02, representing an 8.88% decline—timing that potentially spared McCaul from further losses.

OXY Shares Face 2.5-Year Lows

Occidental Petroleum, a favored investment of renowned investor Warren Buffett, has encountered challenges, dropping 8.87% over the previous month and a staggering 23.36% year-to-date. This downfall has led to OXY hitting a 2.5-year low, currently valued at $46.02 compared to its 52-week high of $70.30, nearing a low of $45.79.

Berkshire Hathaway, led by Buffett, maintains a substantial stake in Occidental, owning approximately 255.28 million shares, which is about 4.9% of its portfolio. With Buffett’s average purchase price at $51.54, the value of his investment is currently facing a paper loss of around 10.7%.

Investor Sentiment Shifts Amid Market Volatility

McCaul's decision to divest from OXY underscores a growing wariness among investors, particularly regarding the energy sector’s outlook. Occidental has faced myriad challenges stemming from fluctuating oil prices and global economic uncertainties, leading to a pronounced shift in attention towards cleaner energy alternatives.

This bearish sentiment surrounding OXY may very well have influenced McCaul’s sale, mirroring a broader trend among politicians and investors seeking to cushion themselves against risks in an unpredictable market.