uploads///P

Are Oil-Weighted Stocks Falling More than Oil?

By

Mar. 29 2018, Updated 9:36 a.m. ET

Returns

On March 21–28, 2018, our list of oil-weighted stocks declined 2.1%—90 basis points more than US crude oil May futures’ decline during this period. In the seven calendar days to March 28, 2018, the oil-weighted stocks that outperformed were:

  • RSP Permian (RSPP) rose 13.7%.
  • Callon Petroleum (CPE) rose 1.1%.
  • Carrizo Oil & Gas (CRZO) fell 1%.

RSP Permian and Callon Petroleum had negative correlations with US crude oil May futures in the trailing week. Except for Carrizo Oil & Gas, the other oil-weighted stocks on our list fell more than US crude oil May futures’ decline during this period.

The oil-weighted stocks with the largest fall in the trailing week were:

  • WPX Energy (WPX) fell 5.4%.
  • Oasis Petroleum (OAS) fell 6.4%.
  • Concho Resources (CXO) fell 6.5%.

WPX Energy and Concho Resources had correlations of more than 35% with US crude oil May futures during this period.

All of these oil-weighted stocks are from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They operate with a production mix of at least 60% in liquids based on their latest quarterly production data. Liquids include crude oil, condensates, and natural gas liquids.

Article continues below advertisement

February 2016

Between February 11, 2016, and March 28, 2018, US crude oil active futures rose 145.6% from their 12-year low. On average, these oil-weighted stocks rose 90.3% during this period.

The oil-weighted stocks with the largest rise during this period were:

  • WPX Energy gained 228.3%.
  • California Resources gained 168.8%.
  • Denbury Resources gained 158.3%.

The oil-weighted stocks that underperformed during this period were:

  • Hess (HES) rose 31.1%.
  • Occidental Petroleum (OXY) rose 5.8%.
  • Carrizo Oil & Gas fell 32.4%.
Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.