Are Oil-Weighted Stocks Outperforming WTI Crude Oil Prices?


Jun. 7 2018, Updated 9:40 a.m. ET


On May 30–June 6, our list of oil-weighted stocks fell 3.8%. US crude oil July futures fell 5.1% during this period. However, some oil stocks bucked the trend. Below are the oil-weighted stocks with the biggest increases in the trailing week.

  • California Resources (CRC) rose 7.1%.
  • Occidental Petroleum (OXY) rose 2.8%
  • Hess (HES) rose 1%.

California Resources and Hess had correlations of less than 14% with US crude oil July futures, while Occidental Petroleum had the most negative correlation with US crude oil prices, as we discussed in the previous part.

Below are the oil-weighted stocks that fell the most in the past five trading sessions:

  • RSP Permian (RSPP) fell 9.7%.
  • Concho Resources (CXO) fell 9.9%.
  • Callon Petroleum (CPE) fell 16.5%.

The sharp sell-off in oil prices during this period could have dragged these oil-weighted stocks. These three oil-weighted stocks had more than 47% correlations with US crude oil July futures in the trailing week.

These oil-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 liquids based on their latest quarterly production data. Liquids include crude oil, condensates, and natural gas liquids.

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Since February 2016

Between February 11, 2016, and June 6, 2018, US crude oil active futures rose 147% from their 12-year low. Our list of oil-weighted stocks rose 159% during this period. Below are the oil-weighted stocks that rose the most.

  • California Resources rose 518.9%.
  • Denbury Resources (DNR) rose 316.5%.
  • WPX Energy rose 307.7%.

The oil-weighted stocks that have risen the least since February 2016 were:

  • Concho Resources rose 49.7%.
  • Occidental Petroleum rose 44.8%.
  • Carrizo Oil & Gas (CRZO) rose 7.6%.

In the trailing week and since February 11, 2016, our list of oil-weighted stocks has outperformed US crude oil futures.


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