For the week ending September 8, 2017, Marathon Oil’s (MRO) stock price increased marginally by less than half a percentage point or from $11.27 to $11.31. Last week, Marathon Oil stock started the week on a positive note. It continued to rise in the first three trading days. At its weekly high price of $11.82 on Wednesday, Marathon Oil stock was sporting a handsome gain of ~6%. On Friday, Marathon Oil’s stock price suffered a steep fall. It gave up most of the gains for the week.
To judge the medium-term trend for Marathon Oil’s stock price, let’s take a look at its weekly metrics. On a weekly basis, Marathon Oil’s stock price is in a strong downtrend. It has been making a pattern of lower highs and lower lows since the beginning of 2017.
On September 8, 2017, Marathon Oil’s stock price closed at $11.31. Its 50-week and 200-week moving averages stood at $14.52 and $21.40, respectively. Marathon Oil’s stock price is trading below its 50-week and 200-week moving averages. Its 50-week moving average is below its 200-week moving average—a negative technical indication.
Crude oil and natural gas prices
For the week ending September 8, 2017, crude oil (USO) prices rose from $47.29 per barrel to $47.48 per barrel—a modest increase of less than half a percentage point. Currently, crude oil prices are trading below their 200-day moving average, which stands at $49.59. Natural gas (UNG) prices fell ~6% last week. Natural gas prices fell from $3.07 per MMBtu (million British thermal units) to $2.89 per MMBtu.
Marathon Oil mainly operates in US resource plays like the Oklahoma Basin, Bakken Shale, and Eagle Ford Shale. Marathon Oil also has operations in international locations like Africa, the Middle East, and Europe. Maraton Oil’s peers ConocoPhillips (COP), Occidental Petroleum (OXY) and Murphy Oil (MUR) rose ~1%, ~2% and ~1%, respectively, last week. Just like Marathon Oil, ConocoPhillips, Occidental Petroleum, and Murphy Oil have operations in US resource plays and in international locations.
In general, the SPDR S&P Oil and Gas Exploration & Production ETF (XOP) has underperformed the SPDR S&P 500 ETF (SPY) by a wide margin. XOP fell ~2%, while SPY rose ~1% last week. However, Marathon Oil has outperformed XOP by a relatively larger margin.
In the next part, we’ll take a look at Marathon Oil’s implied volatility.