Could Oil’s Moves Influence Natural Gas–Weighted Stocks?


Nov. 20 2020, Updated 4:59 p.m. ET

Natural gas–weighted stocks

The following natural gas–weighted stocks could be the most sensitive to US crude oil’s moves based on the past five trading sessions’ correlations with US crude oil June futures:

  • Antero Resources (AR): 50.6%
  • Chesapeake Energy (CHK): 46.6%
  • Range Resources (RRC): 39.9%

RRC and AR had the highest negative correlations with natural gas June futures over the past five trading sessions.

These natural gas–weighted stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They operate with a production mix of at least 60% in natural gas.

Below are the natural gas–weighted stocks that broadly ignored US crude oil prices based on the past five trading sessions’ correlations with US crude oil June futures:

  • Cabot Oil & Gas (COG): 7.1%
  • Gulfport Energy (GPOR): -9.4%

GPOR had the second-highest correlation with natural gas futures in the trailing week.

Article continues below advertisement

Oil’s role

Oil prices are important in order to understand natural gas supplies. Oil prices are important for general sentiment regarding the energy sector. So any changes in oil prices could be crucial for these natural gas–weighted stocks. In fact, all of them except GPOR had higher correlations with US crude oil than natural gas in the trailing week.


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.