Oil and Gas Mix: Energy Stocks in Mid-April

1 2 3 4
Oil and Gas Mix: Energy Stocks in Mid-April PART 1 OF 4

Oil’s Falling: Stocks That Could Get Wet

US crude oil

On April 17, 2017, WTI (West Texas Intermediate) crude oil (USO) (OIIL) (USL) (DBO) May futures closed at $52.65 per barrel, which was ~1% lower than the previous closing price. Oil prices fell on worries of rising US oil production and subdued demand for crude oil.

Oil&#8217;s Falling: Stocks That Could Get Wet

Interested in SPX-INDEX? Don't miss the next report.

Receive e-mail alerts for new research on SPX-INDEX

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Crude oil is an important driver for global equities. In the trailing week, the Energy Select Sector SPDR ETF (XLE) fell 1.5%, while the S&P 500 Index (SPY) (VFINX) (SPX-INDEX) fell 1.1%. The S&P Mid Cap 400 Index (IVOO) (MID-INDEX) fell 0.6% during that period.

The Dow Jones Industrial Average Index (DIA) (DJIA-INDEX) fell 1% between April 10 and April 17. During the same period, the FTSE 100 Index (UKX-INDEX) (EWU) fell 0.3%, while the CAC 40 Index (PX1-INDEX) (EWQ) fell 0.7%.

In this series

In this series, we’ll take a look at the correlations between crude oil-weighted stocks and crude oil. We’ll also look at the correlations between natural gas-weighted stocks and natural gas. But first, we’ll look at a few key upstream oil companies’ correlations with crude.

Oil-weighted stocks

The companies below are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and operate with production mixes of at least 60.0% in crude oil. The following oil-weighted companies had the highest correlations with WTI crude from March 17, 2017, to April 17, 2017:

The oil-weighted stocks in XOP that had the lowest correlations with crude oil during the period included the following:

  • Carrizo Oil & Gas (CRZO): 27.2%
  • Kosmos Energy (KOS): 22.4%

In the next part of this series, we’ll compare the returns of crude oil-weighted stocks with that of crude oil.


Please select a profession that best describes you: