Mar. 12 at 3:48 PM
Piper Sandler upgraded Occidental Petroleum and Murphy Oil to Overweight from Neutral after raising its medium-term oil price outlook.
The firm lifted its forecast for West Texas Intermediate crude oil to
$75 per barrel from
$70, citing tighter global oil balances and potential supply disruptions linked to the conflict involving Iran. Piper estimates a shift of more than 2 million barrels per day in the expected 2026 global oil balance.
For Occidental, the broker raised its price target to
$66 from
$54, noting strong operations in the Delaware Basin and improved capital efficiency, with about
$800 million less spending expected to sustain similar production levels in 2026.
Murphy Oil’s target was increased to
$41 from
$33. Piper said the stock has lagged after weaker exploration results in Ivory Coast and softer 2026 guidance but sees upside from additional appraisal work at the Hai Su Vang project in Vietnam, which could highlight the company’s long-term resource potential.
$OXY $MUR