These Oil-Weighted Stocks Are Gaining More than US Crude Oil

Returns

Between January 10 and January 17, the oil-weighted stocks on our list rose 3.1% on average. This rise in oil-weighted stocks was 2.5 percentage points above US crude oil February futures’ gain during this time period. The outperformers on our list of oil-weighted stocks and their returns in the trailing week are as follows:

  • California Resources (CRC) at 7.3%
  • Denbury Resources (DNR) at 3.8%
  • Whiting Petroleum (WLL) at 3.4%

These Oil-Weighted Stocks Are Gaining More than US Crude Oil

DNR was among the oil-weighted stocks that had the highest correlation with US crude oil prices in the trailing week as discussed in part one. These oil-weighted stocks are from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) with at least a 60% production mix in oil.

The oil-weighted stocks that underperformed in the trailing week are:

  • Diamondback Energy (FANG) at 0.1%
  • Callon Petroleum (CPE) at 0.1%
  • Carrizo Oil & Gas (CRZO) at -2.8%

CRZO had the second-lowest correlation with US crude oil futures in the trailing week.

Since February 2016

Between February 11, 2016, and January 17, 2018, US crude oil active futures gained 144.1%. In February 2016, US crude oil prices settled at their 12-year lowest closing level.

ETFs that have exposure in US crude oil futures such as the ProShares Ultra Bloomberg Crude Oil ETF (UCO), the United States Oil ETF (USO), and the United States 12 Month Oil ETF (USL) have risen 102.8%, 59.9%, and 55.4%, respectively, since February 2016. Oil-weighted stocks gained 102% since oil’s low in 2016.

The oil-weighted stocks with the highest gain over this time period are:

  • California Resources (CRC) at 287.8%
  • Continental Resources (CLR) at 204.8%
  • Denbury Resources (DNR) at 139.8%

The oil-weighted stocks with the lowest gain or highest fall over this time period are:

  • Hess (HES) at 44.6%
  • Occidental Petroleum (OXY) at 25.5%
  • Carrizo Oil & Gas (CRZO) at -0.1%