US Crude Oil: Oil-Weighted Stocks Could Rise
On September 18–25, 2017, our list of oil-weighted stocks rose 7.7%—compared to the 3.7% rise in US crude oil active futures. These oil-weighted stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). These stocks operate with a production mix of a minimum of 60% in oil.
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The oil-weighted stocks that outperformed their peers in the trailing week are:
Whiting Petroleum had the highest correlation with oil prices during this period, as we discussed in Part 1.
The oil-weighted stocks that underperformed their peers in the trailing week are:
Returns since last year
From February 11, 2016, to September 25, 2017, US crude oil active futures rose 99.2%. The United States Oil Fund LP ETF (USO) rose 28.2% during this period due to a negative roll yield. Our list of oil-weighted stocks outperformed USO by 26.7 percentage points during this period. On February 11, 2016, US crude oil prices were at a 12-year low.
Oil-weighted stocks that rose the most between these two dates are as follows:
- Oasis Petroleum (OAS) rose 112.8%.
- Continental Resources (CLR) rose 105.5%.
- Kosmos Energy (KOS) rose 98.8%.
Oil-weighted stocks that underperformed between these two dates are as follows: