Occidental Petroleum has reported lower realised prices for its oil and gas production in the third quarter of 2024 (Q3 2024) compared with the previous period, reported Reuters.

The company, a significant player in the US oil sector, indicated that its total oil output prices were nearly 6% lower, while US natural gas output prices saw a substantial 26% decline.

The company attributed the decrease in oil prices during the July-September quarter to concerns over global oil demand growth.

Concurrently, US natural gas prices experienced a significant drop, reaching multi-year lows, with Waha hub prices turning negative an unprecedented number of times in 2024.

The average realised oil prices for Occidental are expected to be around $75.33/bbl, with global natural gas liquids prices forecast to be $20.47/bbl.

According to Reuters, the company expects the average prices for its US natural gas production to be around $0.40 per million cubic feet (mcf) for the quarter, down from $0.54/mcf in the previous quarter.

Occidental is the second shale producer within a week to announce that lower oil prices during Q3 are likely to impact financial results.

Last week, ExxonMobil indicated that its third-quarter upstream earnings could suffer a reduction of up to $1bn due to lower oil prices and refining margins.

Estimates compiled by LSEG forecast that Occidental will report an adjusted profit of $0.85 per share in Q3, a decrease from $1.03 per share in Q2 and $1.18 per share in Q3 of the previous year.

In August, Occidental completed the $12bn acquisition of CrownRock, which resulted in two months of increased production in Q3.

"Occidental Petroleum reports lower realised prices for oil and gas production in Q3" was originally created and published by Offshore Technology, a GlobalData owned brand.