Occidental Petroleum Corporation ( OXY ) shares are moving higher on Wednesday as oil prices rise following a drone attack on a Russian pipeline, which could weaken supply.

The Details: The drone attack, which took place on Monday, targeted the Kropotkinskaya station located in Krasnodar, according to Reuters. The Kropotkinskaya station is the largest pumping station on the pipeline in Russia and is responsible for pumping about 1% of global crude oil supply.

The Caspian Pipeline Consortium oversees the pipeline and, as of Monday, has not identified those responsible for the attack. However, it confirmed that the Kropotkinskaya facility was shut down, and crude oil flow through the Tengiz-Novorossiysk pipeline system was being maintained at reduced rates, bypassing the pumping station.

Deputy chairman of Russia’s Security Council Dmitry Medvedev stated, “Ukrainian drones attacked a pumping station that provides oil transportation through the main oil pipeline of the Caspian Pipeline Consortium. A blow to an oil consortium could stop oil pumping, unbalance the market, increase oil price spikes and cause direct damage to American companies.”

Furthermore, Medvedev said that Ukraine's attack on a pipeline partially owned by U.S. companies was a blow against President Donald Trump, who has sought lower oil prices. He added that it remained to be seen how Trump would respond.

Occidental shares may be rising following the drone attack, as reduced supply could drive up prices, potentially boosting profits. The attack may also heighten concerns over geopolitical tensions, prompting investors to buy oil stocks as a hedge against future supply uncertainty.

What Else: Occidental reported earnings for the 2024 fiscal-year fourth-quarter after the market closed on Tuesday. The company reported adjusted earnings per share of 80 cents, beating analysts’ estimate of 70 cents. In addition, it reported sales of $6.83 billion, missing analysts’ estimate of $7.05 billion.

Additionally, Occidental announced it achieved its near-term debt repayment target of $4.5 billion in the fourth-quarter. In the 2025 first-quarter, it signed two agreements to divest upstream assets for a combined total of $1.2 billion.

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OXY Price Action: At the time of writing, Occidental shares are trading 4.22% higher at $50.90, according to data from Benzinga Pro.

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