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Are Oil-Weighted Stocks Rising Faster than Oil?

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Apr. 12 2018, Published 1:08 p.m. ET

Returns

Between April 4 and April 11, 2018, our list of oil-weighted stocks rose 8.2%, which was 2.8% more than the rise in US crude oil May futures. In the past five trading sessions, the oil-weighted stocks with the largest gains were:

  • California Resources (CRC): rose 21.4%
  • Carrizo Oil & Gas (CRZO): rose 12.1%
  • Whiting Petroleum (WLL): rose 11.5%

CRC and WLL had correlations greater than 65.0% with US crude oil May futures in the trailing week. We discussed this topic in the previous part. The oil-weighted stocks with the smallest increases or the largest decreases in the trailing week were:

  • Callon Petroleum (CPE): rose 3.6%
  • RSP Permian (RSPP): rose 3.3%
  • Diamondback Energy (FANG): fell 4.9%

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 60.0% 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 April 11, 2018, US crude oil active futures rose 154.9% from their 12-year low. Our list of oil-weighted stocks rose 107.3% during this period. The oil-weighted stocks with the largest rise during this period were:

  • California Resources: gained 248.1%
  • WPX Energy: gained 239.5%
  • Denbury Resources: gained 191.3%

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

  • Hess (HES): rose 47.8%
  • Occidental Petroleum (OXY): rose 20.0%
  • Carrizo Oil & Gas (CRZO): fell 25.0%
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