Oil’s slight dip in the last couple of weeks as compared to the last month has puzzled traders because the war in Ukraine is not stalling and global supply gluts still seem elevated. However, this hasn’t stopped Berkshire Hathaway which has bought up even more of Occidental Petroleum. This week alone they acquired $500 million in shares of OXY, this brings their total stake up to a staggering $8.5 billion. Energy performed amazingly in 2021 and commodities continued to boom into 2022, and oil prices were already moving high well before the war which has only limited supply and boosted demand. OXY has benefited from having an impressive earnings season allowing them to outpace many of their peers.
Finsum: Bidens Oil Tax holiday will be an interesting experiment at the pump, we could see monthly demand over-react to the news.