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Crude Oil above $50: Which Energy Stocks Could Benefit?

PART:
1 2 3 4 5
Part 2
Crude Oil above $50: Which Energy Stocks Could Benefit? PART 2 OF 5

US Crude Oil above $50: Some Oil-Weighted Stocks Are Outperforming

Energy stocks

Between September 11 and September 18, 2017, oil-weighted stocks rose 10.7% on average compared to the 3.6% advance in US crude oil November futures. When US crude oil rises above the psychologically important level of $50, it could be a big driver for the profits of these oil-weighted stocks.

US Crude Oil above $50: Some Oil-Weighted Stocks Are Outperforming

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These oil-weighted stocks are from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). Also, these stocks operate with a minimum 60% production mix in oil.

Oil-weighted stocks that outperformed in the trailing week follow:

  • Denbury Resources (DNR): 20.8%
  • Whiting Petroleum (WLL): 19.2%
  • California Resources (CRC): 6.0%

In the trailing week, DNR, WLL, and CRC had correlations over 85% with US crude oil active futures. We discussed this topic in Part 1 of this series.

Oil-weighted stocks that underperformed in the trailing week follow:

  • Occidental Petroleum (OXY): 2.3%
  • Hess Corporation (HES): 4.4%
  • Kosmos Energy (KOS): 6.2%

Price performance since crude oil’s 12-year low

Between February 11, 2016, and September 18, 2017, US crude oil active futures rose 92.1% compared to a 44.5% rise in these oil-weighted stocks. This measure is meant to track US crude oil futures.

On February 11, 2016, US crude oil prices settled at their 12-year low. The United States Oil Fund LP ETF (USO) rose just 27.2% during this period due to its negative roll yield.

Oil-weighted stocks that outperformed during this period follow:

  • Oasis Petroleum (OAS): 97.2%
  • Continental Resources (CLR): 95.5%
  • Kosmos Energy (KOS): 88.5%

Oil-weighted stocks that underperformed during this period follow:

  • Occidental Petroleum (OXY): 1.1%
  • Whiting Petroleum (WLL): -0.2%
  • Carrizo Oil & Gas (CRZO): -40.3%
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