The energy firm suspends hedging plans as Middle East tensions drive unpredictable crude price swings.
Occidental Petroleum has paused new oil hedging activity, citing heightened volatility driven by the Iran conflict. The move reflects uncertainty over crude price movements as geopolitical risks escalate in the Middle East.
The company previously hedged portions of its production to stabilize cash flow, but recent price swings have complicated risk management. Analysts note similar hedging pauses occurred during past regional conflicts, though market conditions differ.
Oil prices have fluctuated sharply in recent weeks, with Brent crude trading between $85 and $95 per barrel amid supply disruption fears.