Oil-weighted stocks are sensitive to oil
The following oil-weighted stocks could be sensitive to oil’s price movements based on their correlations with US crude oil April futures between March 6 and March 13:
- ConocoPhillips (COP): 97.4%
- Whiting Petroleum (WLL): 88.6%
- EOG Resources (EOG): 83.2%
- Occidental Petroleum (OXY): 83.1%
- Carrizo Oil & Gas (CRZO): 82.4%
Correlation and movements
In the trailing week, US crude oil April futures rose 3.6%. CRZO rose the third most among our list of oil-weighted stocks. In the next part, we’ll discuss these oil-weighted stocks’ returns. On March 13, US crude oil April futures settled at $58.26 per barrel, the highest closing level for active US crude oil futures since November 12.
Except Concho Resources (CXO), the remaining oil-weighted stocks on our list had correlations of more than 48% with US crude oil futures. CXO had a correlation of just 18.7% with US crude oil futures in the seven calendar days to March 13. CXO fell the second most among our list of oil-weighted stocks.
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.