XOM, CVX, RDS.A, BP, SPY: Comparing Their Performance in 4Q17



Integrated energy stocks’ performance

Previously, we looked at news that affected integrated energy stocks. In this part, we’ll compare their performance with that of the broader market in 4Q17.

In 4Q17, Royal Dutch Shell (RDS.A) stock rose 9.4%, more than peers ExxonMobil (XOM), BP (BP), and Chevron (CVX). BP and CVX rose 8.7% and 6.9%, respectively, and XOM had the smallest rise, of 2.8%. The SPDR S&P 500 ETF (SPY), the broader market indicator, rose 5.9%, outperformed by Shell, BP, and CVX, and underperformed by XOM.

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West Texas Intermediate rises in 4Q17

As integrated energy stocks often show a high positive correlation with crude oil prices, higher WTI (West Texas Intermediate) prices in 4Q17 likely boosted these stocks. We’ll discuss this correlation later in this series.

WTI prices rose 17.9% in 4Q17, likely due to production cuts and unplanned outages impacting the global oil supply. According to the U.S. Energy Information Administration, US oil inventories have declined. Pipeline shutdowns in Britain and Libya and major production cuts have also dented the global oil supply. For more on oil prices, read Brent and US Crude Oil Futures Hit a Multiyear High.

Integrated energy companies’ earnings

Shell, XOM, and BP posted strong 3Q17 earnings, surpassing estimates and possibly supporting their stock prices. CVX’s 3Q17 earnings missed estimates, though the stock later surged, likely due to recent tax reform, which cut the corporate tax rate from 35% to 21%. Continue to the next part for a look at these stocks’ moving averages.


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