Outperformance to crude oil
Last week (ended June 16), natural gas (UNG) and crude oil (USO) producer Marathon Oil’s (MRO) stock price outperformed crude oil prices, declining marginally from $12.54 to $12.52. Crude oil prices fell from $45.83 per barrel to $44.97 per barrel during the same period.
Last week, MRO’s stock closed in negative territory, despite its climb on Monday, June 12. Marathon Oil’s stock closed in positive territory on the first two days of the week, in fact, but on Wednesday and Thursday, the stock price fell and gave up all of the week’s gains.
On June 16, 2017, MRO’s stock closed at $12.52. Its 50-day and 200-day moving averages stand at $14.30 and $15.52 respectively.
Last week, peers Energen (EGN) and Diamondback Energy (FANG) fell ~7% and ~6%, respectively. Unlike MRO, other oil and gas exploration and production companies (XOP) underperformed the S&P 500 ETF (SPY) last week by a wide margin.
In the next part, we’ll analyze the possible trading range for MRO stock for this week based on implied volatility.