ConocoPhillips Stock Outperformed Crude Oil and Natural Gas Prices



Crude oil and natural gas prices

Last week, the crude oil (USO) price continued with its falling weekly trend. Crude oil prices fell from $45.83 per barrel to $44.97 per barrel, a decline of ~2%. This was the fourth weekly decline in a row for crude oil prices. Natural gas (UNG) prices were mostly flat last week.

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Amid weaker crude oil (USO) prices, ConocoPhillips (COP) outperformed crude oil and industry peers by a wide margin. COP’s stock price rose ~4% from $44.82 to $46.53. On Monday, COP stock started the week on a positive note. On Tuesday, it achieved the majority of the gains for the week. The stock saw declines on Wednesday and Thursday but had a strong finish on Friday.


Despite the decrease in crude oil prices last week, the Energy Select Sector SPDR ETF (XLE) outperformed the S&P 500 ETF (SPY). The S&P 500 ETF (SPY) was almost flat, whereas XLE was up by more than half a percentage point last week. COP’s peers Energen (EGN) and Occidental Petroleum (OXY) fell ~7% and ~1%, respectively, last week. Just like ConocoPhillips, EGN and OXY have operations in the Permian Basin.

XLE generally invests at least 95% of its total assets in oil and gas companies. According to the SPDR S&P 500 ETF Trust prospectus, “The Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500 Index.”

In the next part, we’ll take a look at COP’s implied volatility.


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