uploads///COP WU_ Price Performance

What Just Happened to ConocoPhillips Stock?

Nicholas Chapman - Author
By

Dec. 4 2020, Updated 10:52 a.m. ET

Crude oil last week

Last week (ended May 26), crude oil prices fell from $50.67 per barrel to $49.80 per barrel. Crude oil prices experienced a heavy selling pressure on Wednesday and dropped by ~5% in a single session—even after OPEC (Organization of the Petroleum Exporting Countries) decided to extend its production cuts into next year.

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ConocoPhillips

Due to weaker crude oil prices, natural gas (UNG) and crude oil (USO) producer ConocoPhillips (COP) also experienced selling pressure, underperforming crude oil but outperforming a few major peers.

Last week, COP’s stock price fell from $47.48 to $45.35—a decline of ~4%. ConocoPhillips’s stock closed lower on the first four days of the week, followed by a marginal gain on Friday, May 26.

Peers

By comparison, peers Marathon Oil (MRO) and Devon Energy (DVN) fell ~6% and ~7%, respectively, last week. Like ConocoPhillips, peers MRO and DVN are focusing more on US resource plays in fiscal 2017 and have the majority of their capital expenditures allocated to US resource plays.

Due to declining crude oil prices last week, the Energy Select Sector SPDR ETF (XLE) underperformed the broader market. XLE fell ~2%, whereas the S&P 500 ETF (SPY) rose ~1% last week. Notably, XLE invests around 95% of its total assets in oil and gas companies.

In the next part, we’ll examine the potential trading range for COP stock this week (ended June 2).

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