Key Oil-Weighted Stocks amid Oil’s Up and Down

On January 16, US crude oil February futures rose 0.4% and closed at $52.31 per barrel, despite bearish EIA inventory data. In the last trading session, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.2% and 0.6%, respectively.

On January 16, the Energy Select Sector SPDR ETF (XLE) fell 0.1%. Earnings concerns might have dragged energy stocks despite the gain in oil and the broader market.

The following oil-weighted stocks could be sensitive to oil’s price movements based on their correlations with US crude oil February futures in the past five trading sessions:

• Callon Petroleum (CPE) at 88.8%
• WPX Energy (WPX) at 84%
• Hess (HES) at 72.7%
• Denbury Resources (DNR) at 71.2%
• Whiting Petroleum (WLL) at 66.9%

In the trailing week, US crude oil February futures fell 0.1%. Denbury Resources and Callon Petroleum had the second and third-largest declines among our list of oil-weighted stocks. In the next part, we’ll discuss these oil-weighted stocks’ returns.

None of the oil-weighted stocks on our list except EOG Resources (EOG) and Apache (APA) had correlations of less than 35% with US crude oil futures in the seven days leading up to January 16. EOG Resources and Apache had correlations of 7.8% and -45% with US crude oil prices during this period.

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