How Did Marathon Oil Stock Perform Last Week?
For the week ending August 25, 2017, Marathon Oil’s (MRO) stock price rose ~2% from $10.87 to $11.05. Its stock price is making a pattern of lower lows and higher highs in fiscal 2017. Last week, even though Marathon Oil’s stock price started the week on a lower note, it managed to rise on Tuesday and Wednesday, which helped the stock close the week positive.
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On a weekly basis, Marathon Oil stock is trading below its 50-week and 200-week moving averages. On August 25, 2017, its stock price closed at $11.05, while its 50-week and 200-week moving averages stand at $14.71 and $21.73. Currently, Marathon Oil’s stock price is ~21% below its 50-week moving average.
Crude oil and natural gas prices
For the week ending August 25, 2017, crude oil (USO) prices fell from $48.66 per barrel to $47.87 per barrel—a decrease of almost two percentage points. Currently, crude oil prices are trading slightly below their 200-day moving average, which stands at $49.49. Two weeks ago, crude oil prices found support at their 50-day moving average. As of August 25, 2017, the 50-day moving average stands at $46.76. Natural gas (UNG) prices rose ~1% last week. Natural gas prices rose from $2.89 per MMBtu (million British thermal units) to $2.92 per MMBtu.
Marathon Oil primarily operates at in US resource plays, like the Oklahoma Basin, and international locations. Maraton Oil’s peers ConocoPhillips (COP), Devon Energy (DVN), and Diamondback Energy (FANG) fell ~1%, ~3%, and ~2% last week. Just like Marathon Oil, Devon Energy has operations in the Oklahoma Basin. ConocoPhillips and Diamondback Energy are active in the Permian Basin.
For the week ending August 25, crude oil (USO) and natural gas (UNG) exploration and production companies (XOP) outperformed the S&P 500 ETF (SPY). Even though SPY rose marginally by 0.76%, XOP rose more than 1%. According to the SPDR S&P500 ETF Trust prospectus, “The Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index.”
In the next part, we’ll look at Marathon Oil’s implied volatility.