Crude oil in strong uptrend
For the week ended January 12, 2018, crude oil (USO) prices increased significantly, from $61.44 per barrel to $64.30 per barrel, a rise of almost 5%. On Tuesday, January 9, they moved above their 2015 high of $62.58. Currently, crude oil prices are trading above their 200-week moving average, which is a very positive sign. Crude oil’s 200-week moving average acts as important support and resistance and helps identify the multi-year trend in crude oil prices. As of January 12, 2018, crude oil was trading at $64.30 per barrel, whereas its 200-week moving average was $57.03.
Natural gas (UNG) prices rose significantly, from $2.79 per mmBtu (million British thermal unit) to $3.20 per mmBtu.
Strong uptrend for ConocoPhillips stock
Due to strong gains in crude oil and natural gas prices, ConocoPhillips (COP) stock rose 5.6%, from $56.88 to $60.05, in the week ended January 12, 2018. It rose every day that week except Wednesday.
ConocoPhillips stock has been on a strong uptrend since August 22, 2017, rising more than 42%. In December 2017, COP stock moved above its 200-week moving average, which is a positive technical indication. As of January 12, 2018, COP was trading at $60.05, whereas its 200-week moving average was $51.97.
ConocoPhillips is expected to release its 4Q17 and 2017 earnings before the market opens on February 1, 2018.
A look at its peers
Due to rising crude oil and natural gas prices last week, the Energy Select Sector SPDR ETF (XLE) had a positive performance, rising 3.3%. It outperformed the SPDR S&P 500 ETF (SPY), which rose 1.7%. COP’s peers that also rose last week include Devon Energy (DVN) and Marathon Oil (MRO). DVN rose 2.2%, and MRO rose 5.2%.
In the next part, we’ll look at COP’s correlation coefficient with crude oil prices.