Time to be cautious?
Crude oil has been very volatile recently. WTI reached a new four-year high of $76.40 per barrel on October 3, amid supply concerns due to looming Iran sanctions. It then retreated on reports of a possible increase in supplies from Saudi Arabia and Russia to compensate for the loss of Iranian supplies. This retreat was followed by another major sell-off, with US crude falling below $71 per barrel on October 11 due to global markets correcting amid concerns over lower global growth and higher US Treasury yields.
The recent sell-off in crude resulted in US upstream stocks correcting sharply, particularly crude-weighted stocks and those that have rallied over the past year. US crude oil has mostly rallied since last October, boosting upstream stocks. Crude oil prices falling further due to concerns over lower global demand could reverse these gains.
In this series, we’ll look at the ten upstream stocks that have risen the most from their 52-week lows:
- Northern Oil & Gas (NOG)
- Denbury Resources (DNR)
- California Resources (CRC)
- W&T Offshore (WTI)
- Penn Virginia (PVAC)
- Whiting Petroleum (WLL)
- Viper Energy Partners (VNOM)
- WildHorse Resource Development (WRD)
- WPX Energy (WPX)
- SM Energy (SM)
We’ll compare their outlook and analysts’ recommendations. As crude oil prices could rise before Iranian sanctions come into full effect on November 4, the recent dip could be a good buying opportunity for these stocks. Next, we’ll look at Northern Oil & Gas.