Occidental agrees to decrease their share in Libyan oil production significantly, in order to spend $5 billion to expand production in Libya and continue producing for thirty more years. It is expected that the production renovations will yield higher profitability, but shares fell at investor skepticism.
On 25 January, the share price dropped from the previous day’s close of USD 46.2 to close at USD 45.4. This was mainly due to the announcement of the company’s fourth quarter results for 2006. The company’s profit fell by 19 percent due to a drop in oil and natural gas prices.
The share price rose from the previous day’s close of USD 43.81 to close at USD 45.09 on January 23, 2007. This increase was mainly due to the announcement of the U.S. government’s plans for increasing oil reserves and forecasts for cold weather.
The share price declined from USD 48.83 to USD 46.72 on December 29, 2006. This decrease in share price was mainly due to the drop in world oil prices. The price of one barrel of oil plunged by USD 2.73 to close at USD 58.32 a barrel on the New York Mercantile Exchange. Weak demand for oil and oil products also contributed to this.