Occidental Petroleum (OXY) saw its stock price surge by 5.02% in intraday trading, outperforming the broader market and positioning itself as one of the top performers in the S&P 500. The significant uptick comes as Warren Buffett's long-term investment in the company continues to draw attention and the energy sector shows signs of strength.

Warren Buffett's Berkshire Hathaway has maintained a substantial position in Occidental Petroleum, with the stock representing one of the largest holdings in Buffett's portfolio. The Oracle of Omaha's continued faith in the company appears to be resonating with investors. Occidental, along with Chevron, comprises more than 10% of Berkshire's publicly traded portfolio, with a combined value of around $24 billion. This significant stake underscores Buffett's bullish outlook on the energy sector, particularly on companies with strong fundamentals and attractive valuations.

The energy sector as a whole has been showing signs of resilience, with Occidental Petroleum ranking among the top performers in the S&P 500. This broader trend suggests that investors are reevaluating their positions in energy stocks, which have been trading at relatively low valuations compared to the broader market. Occidental's forward price-to-earnings ratio below 14 and a dividend yield of 2.47% make it an attractive option for value investors seeking both growth potential and income.

While the exact catalyst for today's surge is not immediately clear, the stock's movement aligns with a potential shift in sentiment towards energy stocks. Analysts at 22V Research have identified energy as one of the sectors most likely to rebound strongly if trade-related market volatility subsides. This optimism, coupled with Buffett's long-term commitment to the stock, may be contributing to increased investor confidence in Occidental Petroleum's prospects.