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Which Oil-Weighted Stocks Might Be Most Affected by OPEC Meeting?

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Nov. 20 2020, Updated 3:42 p.m. ET

Oil prices

On December 5, US crude oil January futures fell 0.7% and closed at $52.89 per barrel. The market wasn’t expecting a significant production cut during OPEC’s meeting on December 6, which might have dragged oil prices. On December 5, US equity markets were closed.

In the last trading session, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) fell 3.2% and 3.1%, respectively. On December 4, the Energy Select Sector SPDR ETF (XLE) fell 2.9%. The fall in the broader market might have hurt energy stocks.

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Oil prices are driving oil-weighted stocks

The following oil-weighted stocks could be sensitive to US crude oil movements and could be most impacted by OPEC’s meeting outcome based on their correlations with US crude oil January futures in the past five trading sessions:

  • Oasis Petroleum (OAS) at 76.8%
  • Callon Petroleum (CPE) at 69.8%
  • Carrizo Oil & Gas (CRZO) at 66.1%
  • Apache (APA) at 50.3%
  • Concho Resources (CXO) at 48.6%

In the seven calendar days to December 4, California Resources (CRC) and Occidental Petroleum (OXY) had the lowest correlations of 18.4% and 6.4%, respectively, with US crude oil prices.

All of these oil-weighted stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They have production mixes 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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