Oil prices are rallying, and Buffett is buying.

Moomoo Learn joined discussion · Mar 7, 2022 03:38

- Oil prices are rallying

Last week, Brent crude futures, the global benchmark, surged above $110 a barrel, the highest level since 2014. Supply chain bottlenecks and Russian-Ukrainian tensions have together fueled commodity inflation.

It seems the momentum is not ending. Oil prices soared to their highest since 2008 due to delays in the potential return of Iranian crude to global markets and as the United States and European allies consider banning imports of Russian oil, according Reuters.

Source: marketwatch

- Buffett has the loud laugh

Oil prices are rallying and Buffett is buying.

A week ago, Warren Buffett released his annual shareholder letter and complained that he "couldn't find anything to get us excited about" in the stock market.

However, a new filing with the U.S. Securities and Exchange Commission on last Friday night shows that someone at Berkshire Hathaway is very excited about $Occidental Petroleum (OXY.US)$.

Source: SEC

As of March 4, 2022, Berkshire owned 91.2 million shares of the oil giant's common stock. At the close price of $56.15 last Friday, they're worth $5.1 billion. The stock is up 17.59% on Friday and 92% year to date from the opening price of $29.21.

The momentum continues in today’s pre-market session.

- Market Insights

The agency believes that high oil prices are good for the performance release of relevant industrial chains.

The short-term trend of oil prices still needs to continue to follow the evolution of the situation in Russia and Ukraine, and it does not rule out that oil prices will continue to rise.

The recovery of crude oil supply usually lags behind the recovery of demand, there is still the possibility of rapid recovery of demand and relatively tight supply of crude oil from January to February, even if the conflict between Russia and Ukraine is not taken into account. Short-term oil prices also have strong fundamental support.

For more: Institutions: High oil prices are good for the industrial chain

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