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Why Has There Been Weakness in Whiting Petroleum Stock?

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Whiting Petroleum’s stock performance

Whiting Petroleum (WLL) stock had been on a marked uptrend since late 2016, especially since the end of November 2016 when OPEC (Organization of Petroleum Exporting Countries) decided to cut oil production and crude oil prices (USO) (UCO) started rallying.

Since January 2017, its stock has been falling. The stock has mostly been in a downtrend.

In the three months since November, Whiting Petroleum stock rose ~29%. Crude oil prices rose 16.2% during the same period.

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While crude oil prices continue to remain above $50 per barrel, concerns started intensifying regarding a global oil supply gut. Stabilizing oil prices might tempt producers to ramp up production again, which would offset OPEC’s production cuts. It has likely been pressuring crude oil prices. A stronger dollar has also been weighing on crude oil prices.

Compared to oil prices and the energy sector, the broader markets have performed relatively well since January this year. The SPDR S&P 500 ETF (SPY) (SPX-INDEX) rose ~1.8%. The SPDR Dow Jones Industrial Average ETF (DIA) (DJIA-INDEX) rose 1%, while the Fidelity NASDAQ Composite Index ETF (ONEQ) (COMP-INDEX) rose 5%. Crude oil prices and the Energy Select SPDR ETF (XLE) fell 1.7% and 5.6%, respectively, during the same period.

Whiting Petroleum stock has risen ~63% year-over-year. Crude oil prices rose ~76% during the same period. XLE rose 29% during the same period.

Read Will Whiting Petroleum Be Able to Cut Its Losses This Week? to learn more about Whiting Petroleum’s stock performance trends.

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