Occidental Petroleum notes higher on contract; U.S. Steel in focus on ratings outlook

By James McCandless

San Antonio, Dec. 10 – During the Thursday distressed debt session, energy and manufacturing names moved along the forefront.

Occidental Petroleum Corp.’s notes were pushed higher after winning oil exploration rights from the United Arab Emirates.

The 2.9% senior notes due 2024 added ½ point to close at 95¾ bid. The 2.7% senior notes due 2022 improved by ½ point to close at 101 bid.

On Wednesday, news broke that the Houston-based independent oil and gas producer was awarded new oil exploration rights in the United Arab Emirates.

The company will invest up to $140 million to search for petroleum in the new “Onshore Block 5” region in Abu Dhabi.

The move comes after the nations of the Organization of Petroleum Exporting Countries and other producers elected to increase oil output in January.

Meanwhile, manufacturing name United States Steel Corp.’s notes diverged in direction amid a positive ratings shift.

The 6¼% senior notes due 2026 lost 1¼ points to close at 94 bid. The 6.65% senior notes due 2037 closed level at 86½ bid.

As the session headed for the close on Thursday, the Pittsburgh-based steel producer received an outlook change from Moody’s Investors Service.

Chiefly, the agency raised its outlook on the company to stable from negative.

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