Jim Cramer on Occidental Petroleum: “If the War Ends, That Stock’s Going to Go Down”

Occidental Petroleum Corporation (NYSE:OXY) was among the stocks Jim Cramer highlighted on Mad Money as he noted that the market has an appetite for stocks. Inquiring about the stock, a caller sought Cramer’s take on it, and in response, he said:

Okay, at this point, I don’t want to make it sound like I’m pro-war… but I’m going to say it: If the war ends, that stock’s going to go down a lot, okay, and that’s the way you have to look at it.

A stock market graph. Photo by energepic.com

Occidental Petroleum Corporation (NYSE:OXY) explores for and produces oil, natural gas, and liquid condensates and handles their marketing, processing, and transportation. Cramer discussed the stock during the April 1 episode and remarked:

Next up, I was a little surprised that with crude oil up more than 70% year to date, there were only three oil plays among the S&P’s top 10 performers, APA, Texas Pacific Land, which you know we’ve liked a lot, and Occidental Petroleum, which frankly we haven’t liked at all… How about OXY? Occidental Petroleum’s up 58%. Ever since OXY, as it’s known, acquired Anadarko nearly seven years ago, it became the higher risk way to play the price of crude. People do that. Instead of buying a crude index, they buy Occidental. When oil goes higher, this stock rallies hard, but when oil comes down, the stock gets pulverized. Basically, OXY’s a big loser if peace breaks out and a big winner if Iranians insist on keeping the Strait closed.

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