In the last two weeks, crude oil (USO) and natural gas (UNG) producer ConocoPhillips (COP) has seen its stock price underperform crude oil prices. ConocoPhillips’s stock price fell from $50.14 to $47.04, whereas crude oil prices were marginally up from $53.86 per barrel to $53.99 per barrel during the same period. ConocoPhillips’s production contains ~60% liquids. Thus, its price is more dependent on crude oil prices. We’ll study recent news related to COP’s production mix in the next part.
Did COP peers also underperform?
COP’s peers Devon Energy (DVN), Marathon Oil (MRO), and Occidental Petroleum (OXY) are down by ~6%, ~3%, and ~5%, respectively, in the last two weeks. The underperformance of oil and gas exploration and production companies (XOP) was more evident in light of the S&P 500’s (SPY) positive performance over the last two weeks.
ConocoPhillips’s stock price rallied strongly from the low of $38.37 in August 2016 to a high of $52.89 in December 2016. Since then, COP stock prices appear to be consolidating the gains. Currently, COP is trading below its 50-day moving average but above its 200-day moving average. On February 24, 2017, COP’s stock price closed at $47.04, whereas its 50-day and 200-day moving averages stand at $49.84 and $44.51, respectively. COP’s 50-day moving average dropped last week, but its 200-day moving average is still trending upward.
In the next article, we’ll look at recent updates for COP.