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How Total Stock Compares to Oil Prices and Markets

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Apr. 18 2019, Published 2:52 p.m. ET

Total stock returns

Total (TOT) stock has been rising since the start of this year. In this part, we’ll compare Total stock returns to the SPDR S&P 500 ETF (SPY), which is a broader market indicator, and WTI, which represents benchmark crude oil.

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Total stock compared to SPY and WTI

Since January 2, Total stock has risen by 5.5%, which is likely due to stronger oil prices and better equity markets. WTI has risen by 37.6% since January 2. The increase in oil prices is due to OPEC’s production cut, which has been supported firmly by Saudi Arabia. The cuts are an attempt to balance the global oil demand-supply dynamics. Also, the expectation of the cuts extending into H2 2019 has supported oil prices. Plus, the sanctions against Venezuela and Iran have helped oil prices.

The US equity market has also followed a similar trend. SPY has gained 16.0% since January 2, which has been led by better corporate earnings, an expectation of no interest rate hike in the current year, and optimism about US-China trade talks. Overall, Total stock has risen since the beginning of the year but has underperformed SPY.

Peers’ performance

YPF (YPF), ENI (E), and Suncor Energy (SU) also have risen by 8.7%, 10.4%, and 16.3%, respectively, since January 2. Plus, ExxonMobil (XOM) stock has increased by 16.5% in the same period.

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