Oil and Gas, Mint Finance

Suhas Reddy

Oil and Gas

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

Equity Bottom-Up

<ul>
<li>Occidental’s USD 9.7 billion OxyChem divestment fast-tracks debt reduction but removes a steady earnings buffer, leaving the company more exposed to volatile oil market cycles.</li>
<li>The sale strengthens Occidental’s balance sheet and strategic focus on upstream operations but sacrifices diversification, as the chemicals unit provided resilient cash flows during oil downturns.</li>
<li>Executing the divestment amid a chemical sector downcycle appears poorly timed. Occidental will sell a profitable asset at a discount while crude prices remain subdued.</li>
</ul>


Occidental’s USD 9.7 billion OxyChem divestment fast-tracks debt reduction but removes a steady earnings buffer, leaving the company more exposed to volatile oil market cycles.
The sale strengthens Occidental’s balance sheet and strategic focus on upstream operations but sacrifices diversification, as the chemicals unit provided resilient cash flows during oil downturns.
Executing the divestment amid a chemical sector downcycle appears poorly timed. Occidental will sell a profitable asset at a discount while crude prices remain subdued.


Occidental’s Rush to Reduce Debt Will Erode Long-Term Resilience

Global Editor, Base Oil News

Iain Pocock

Global Editor

Global Base Oils and Lubricants Markets

Base Oil News

Base Oil News focuses on the interplay between fundamentals and prices in the global base oils and lubricants markets.

Baseoilnews.com combines daily, weekly and monthly base oils and lubes fundamentals data from every region of the world to build the most comprehensive and up-to-date global picture of the state of the market.

The data and analysis provide key tools to understand current market developments and opportunities and to anticipate how the market is likely to behave in the coming months.

Base oils producers, lube blenders and consumers can then better plan accordingly.

Baseoilnews.com analyses and publishes market news and data every day as it breaks.

Commodities

<ul><li>US base oils demand could be steadier amid rangebound prices and signs of more muted pressure from any surplus supply.</li><li>US base oils demand typically rises in month of October from September, before falling in month of November.</li><li>Demand could be lower than usual as buyers and distributors work down stocks built up as buffer against weather-related supply disruptions during Atlantic hurricane season.</li></ul>

US base oils demand could be steadier amid rangebound prices and signs of more muted pressure from any surplus supply.US base oils demand typically rises in month of October from September, before falling in month of November.Demand could be lower than usual as buyers and distributors work down stocks built up as buffer against weather-related supply disruptions during Atlantic hurricane season.

Americas/EMEA base oils demand outlook: Week of 13 October

<ul><li>US base oils prices remain in narrow range vs feedstock prices.</li><li>Steady margins sustain incentive for refiners to maintain or raise output at time of year when demand typically starts to slow.</li><li>Persistently-steady margins and increasingly squeezed stocks in first seven months of 2025 suggest fundamentals remain balanced even with incentive to maintain higher output.</li></ul>

US base oils prices remain in narrow range vs feedstock prices.Steady margins sustain incentive for refiners to maintain or raise output at time of year when demand typically starts to slow.Persistently-steady margins and increasingly squeezed stocks in first seven months of 2025 suggest fundamentals remain balanced even with incentive to maintain higher output.

Americas/EMEA base oils supply outlook: Week of 13 October

<ul><li>Asia Group I heavy-neutrals price falls vs ex-tank UAE price since early-August to widest discount in more than two years.</li><li>Wider price-discount facilitates arbitrage to move surplus supplies from Asia to Middle East.</li><li>Asia’s surplus Group I supplies rise amid pick-up in imports from other regions like Europe, as well as recovery in output in markets like Thailand after plant-maintenance work.</li></ul>

Asia Group I heavy-neutrals price falls vs ex-tank UAE price since early-August to widest discount in more than two years.Wider price-discount facilitates arbitrage to move surplus supplies from Asia to Middle East.Asia’s surplus Group I supplies rise amid pick-up in imports from other regions like Europe, as well as recovery in output in markets like Thailand after plant-maintenance work.

Global base oils arb outlook: Week of 13 October

<ul><li>Global base oils prices mostly hold firm versus feedstock/competing fuel prices amid further drop in crude oil prices.</li><li>Mostly-steady outright base oils prices and lower crude prices cushion impact of strong gasoil premium to crude oil.</li><li>Strong gasoil crack-spread incentivizes any refinery moves to trim output levels to focus more on light grades than heavy grades.</li></ul>

Global base oils prices mostly hold firm versus feedstock/competing fuel prices amid further drop in crude oil prices.Mostly-steady outright base oils prices and lower crude prices cushion impact of strong gasoil premium to crude oil.Strong gasoil crack-spread incentivizes any refinery moves to trim output levels to focus more on light grades than heavy grades.

Global base oils margins outlook: Week of 13 October

United States

Berkshire Hathaway Inc. is a holding company owning subsidiaries in a variety of business sectors.  The Company's principal operations are insurance business conducted nationwide on a primary basis and worldwide on a reinsurance basis. Berkshire's other operations include a railway company, a specialty chemical company, and an international association of diversified businesses.

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Berkshire Hathaway Inc Cl B (BRK/B US)

Occidental’s Rush to Reduce Debt Will Erode Long-Term Resilience

Occidental's $9.7 billion OxyChem divestment boosts debt reduction but increases vulnerability to oil market fluctuations by sacrificing a steady...

Mint Finance

Americas/EMEA base oils demand outlook: Week of 13 October

US base oils demand could be steadier amid rangebound prices and signs of more muted pressure from any surplus supply. US base oils demand...

Base Oil News

Americas/EMEA base oils supply outlook: Week of 13 October

US base oils prices remain in narrow range vs feedstock prices. Steady margins sustain incentive for refiners to maintain or raise output at time...

Base Oil News

Global base oils arb outlook: Week of 13 October

Asia Group I heavy-neutrals price falls vs ex-tank UAE price since early-August to widest discount in more than two years. Wider price-discount...

Base Oil News

Global base oils margins outlook: Week of 13 October

Global base oils prices mostly hold firm versus feedstock/competing fuel prices amid further drop in crude oil prices. Mostly-steady outright base...

Base Oil News

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Occidental’s Rush to Reduce Debt Will Erode Long-Term Resilience

​Occidental's $9.7 billion OxyChem divestment boosts debt reduction but increases vulnerability to oil market fluctuations by sacrificing a steady...

Mint Finance

Americas/EMEA base oils demand outlook: Week of 13 October

US base oils demand could be steadier amid rangebound prices and signs of more muted pressure from any surplus supply. US base oils demand...

Base Oil News

Americas/EMEA base oils supply outlook: Week of 13 October

US base oils prices remain in narrow range vs feedstock prices. Steady margins sustain incentive for refiners to maintain or raise output at time...

Base Oil News

Global base oils arb outlook: Week of 13 October

Asia Group I heavy-neutrals price falls vs ex-tank UAE price since early-August to widest discount in more than two years. Wider price-discount...

Base Oil News

Global base oils margins outlook: Week of 13 October

Global base oils prices mostly hold firm versus feedstock/competing fuel prices amid further drop in crude oil prices. Mostly-steady outright base...

Base Oil News

Occidental's $9.7 billion OxyChem divestment boosts debt reduction but increases vulnerability to oil market fluctuations by sacrificing a steady...