shares rose sharply on Monday. There are three reasons why.
First, oil prices were rising on Monday over supply fears as the US and its allies were considering Russian oil ban after Moscow’s invasion of Ukraine. West Texas intermediate crude oil, the US benchmark, rose 6% to $122.66 a barrel. International benchmark Brent rose 5.8% to $124.96 a barrel; it had reached $130 a barrel in early trading.
Secretary of State Antony Blinken said over the weekend that the United States and its European allies have had a “very active discussion” about banning Russian oil imports.
Secondly, Berkshire Hathaway revealed late Friday in a filing that it owns a 9.8% stake in oil and gas producer Occidental Petroleum (ticker: OXY) worth $5.1 billion.
Berkshire Hathaway (ticker: BRK.A and BRK.A) disclosed in a form submission 4 with the Securities and Exchange Commission that he owned 91.2 million shares of Occidental Petroleum, up from 29.8 million shares on Tuesday, which was disclosed in a separate 13-G SEC filing on Friday.
Finally, The Wall Street Journal reported that activist investor Carlos Ican sold the last of what was once a roughly 10% stake in Occidental Petroleum.
Icahn has been cutting his stake in the company, and in recent days sold the rest, according to a letter he sent to Occidental’s board of directors on Sunday, the Journal reported. Icahn’s two representatives on Occidental’s board are also resigning, he said in the letter, according to the Journal.
Icahn had clashed with Occidental and criticized its CEO, Vicki Hollub, after the company outbid him.
(CVX) to acquire Anadarko Petroleum in May 2019 for $38 billion.
“While we certainly had our disagreements with Vicki Hollub regarding mergers and acquisitions, we thank her for using her well-honed operational skills and resilience so well in Occidental’s darkest hours,” Icahn wrote in the letter. “We think our relationship with Occidental turned out to be the best thing about activism.”
Occidental shares rose 8.3% to $60.88 a share early Monday. The stock soared 93.7% in 2022 as oil prices soared to their highest levels since 2008.
Write Joe Woelfel at [email protected]