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Marathon Oil Stock Rose Due to Strong Energy Commodities

PART:
1 2 3 4
Part 2
Marathon Oil Stock Rose Due to Strong Energy Commodities PART 2 OF 4

What Really Moved Marathon Oil Stock Last Week

Marathon Oil’s correlations last week

As we discussed in the previous part, Marathon Oil’s (MRO) stock price rose ~6% last week. Its stock price rose due to impressive rises of ~5% in crude oil and natural gas last week. Even the SPDR S&P 500 ETF (SPY) rose ~1.6% last week. In this part, we’ll discuss what moved Marathon Oil’s stock price last week. We’ll analyze the stock’s correlation coefficient with crude oil, natural gas, and SPY. Last week, the S&P 500 Index rose ~1.6%, which indicates the positive momentum in equities.

What Really Moved Marathon Oil Stock Last Week

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For the week ending September 15, Marathon Oil stock showed a correlation of ~97% with crude oil (USO) (SCO). Movements in crude oil influenced Marathon Oil stock.

Now, we’ll discuss its correlation with natural gas (UNG) and SPY during the same period. Marathon Oil stock had correlations of ~85% and ~80% with the natural gas (UNG) and SPY last week.

Based on the daily price changes last week, Marathon Oil stock was influenced more by the upward movement in crude oil prices than the upward movements in natural gas prices or the broader equity market. Marathon Oil’s production mix contains ~62% liquids. As a result, its stock has a stronger correlation with crude oil prices.

Marathon Oil stock showed correlations of ~79%, ~54% and ~86% with crude oil (USO), natural gas (UNG) and SPY’s prices, respectively, in the past month.

Marathon Oil’s peers

Marathon Oil’s peer Consol Energy (CNX) had a correlation of ~88% with natural gas prices last week. It rose 10.3% due to the strong rise in natural gas prices. Consol Energy had a correlation of ~84% and ~92% with crude oil and SPY last week. Consol Energy’s production mix contains more than 90% natural gas. As a result, it has a high correlation with natural gas prices.

To learn more about the correlation of upstream stocks with various energy commodities, read How Correlations with Energy Commodities Impact Upstream Stocks.

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