On January 11–18, Laredo Petroleum (LPI) fell the most on our list of upstream energy stocks from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). However, XOP rose 4%—the second-largest rise among the major energy ETFs that we discussed in Part 1 of this series.
What might be behind the fall?
On January 16, Barclays reduced its target price on Callon Petroleum by $4 to $10. Barclays reduced its rating from overweight to equal weight. Since then, the stock has declined almost 1%. On January 16, Barclays reduced its target price on Marathon Oil by $3 to $23. On January 14, J.P. Morgan reduced its target price on RRC by $1 to $17.
The target price reduction might have induced a downside in these upstream stocks. However, a rise of 4.1% in US crude oil prices and a rise of 12.4% in natural gas last week could have limited the downside in these upstream stocks.