Are Oil-Weighted Stocks Falling More than Oil?


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


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.

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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%.

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