US crude oil
On October 2, 2017, US crude oil (USO) (DBO) (USL) November futures closed at $50.58 per barrel, 2.1% down from the last trading session. Between September 25 and October 2, 2017, US crude oil prices fell 3.1%. However, US crude oil prices were just 7.1% below their 2017 highest closing price. The possible limited short-term upside in US crude oil production and the revival of the US refinery utilization rate could be the bullish drivers for oil prices.
Oil-weighted stocks that could track US crude oil near the $50 mark based on their correlations in the trailing week are as follows:
- Hess (HES): 95.8%
- Whiting Petroleum (WLL): 93.2%
- Continental Resources (CLR): 93.2%
- Kosmos Energy (KOS): 92.9%
- Oasis Petroleum (OAS): 91.3%
In fact, WLL and KOS underperformed their peers and closed in the red in the trailing week. We’ll discuss the returns of these oil-weighted stocks in part two of this series.
All these oil-weighted stocks operate with a minimum 60% production mix in oil. Moreover, these stocks are from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
Oil-weighted stocks that had the least correlation with oil prices in the trailing week were: