Occidental Cuts First-Quarter Output Forecast on Mideast Unrest, Weather

By Jim Polson - Mar 29, 2011

Occidental Petroleum Corp. (OXY), the largest onshore crude oil producer in the continental U.S., cut its first-quarter production forecast, citing disruptions in Libya and Yemen and slower capital spending in Iraq.

Daily output of oil and natural gas will average the equivalent of 711,000 to 721,000 barrels of oil, 29,000 barrels a day less than previously expected for the quarter, Occidental, based in Los Angles, said today in slides prepared for a conference in New Orleans.

Production from Libya, Yemen and Iraq will be 15,000 barrels a day lower than expected, according to the filing. Bad weather in the U.S. and oil prices each will cause Occidental to lower output by 7,000 barrels a day, the company said.

The announcement was made before regular trading began on U.S. markets. Occidental rose 2 cents to $100.87 yesterday in New York Stock Exchange composite trading.

Source: Bloomberg