Occidental Petroleum Cut Its Capital Spending by 8% for 2026. Should the Oil Giant Rethink Its Plans with Crude Prices Now Up 30%?
Occidental Petroleum should remain prudent and not be tempted to boost production simply because oil prices are elevated.
Overview
Everyone deals with some form of temptation. Even companies with energy and mining outfits are prime examples, so with oil prices high today, mostly due to the war in Iran, it's a good time to discuss corporate temptation as it relates to energy stocks, including Occidental Petroleum (NYSE: OXY).
When it reported first-quarter results in May, Occidental told investors it expects capital spending to decline by $550 million this year compared with 2025, targeting total spending of $5.5 billion to $5.9 billion. But with oil prices alluringly high, it may appear that Occidental and other oil companies may be incentivized to boost output.
Occidental Petroleum shouldn't run to boost production because oil prices are high. Image source: Getty Images.
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Originally published at www.fool.com.