Oil-weighted stocks’ returns
On May 22–29, our list of oil-weighted stocks fell 7.2%—compared to the 4.2% fall in US crude oil July futures. On average, our list of oil-weighted stocks underperformed US crude oil prices. Trade war concerns might have intensified the fall in these energy stocks.
Occidental Petroleum outperformed oil-weighted stocks
Let’s take a look at the oil-weighted stocks that fell the least in the last four trading sessions:
- Occidental Petroleum (OXY) fell 1.5%.
- Oasis Petroleum (OAS) fell 2.8%
- Pioneer Natural Resources (PXD) fell 4.3%.
Only Occidental Petroleum had a negative correlation with oil prices among our list of oil-weighted stocks. In May, the discount between Midland and Magellan East Houston WTI expanded ~$0.6 from last month, which could boost Occidental Petroleum’s midstream earnings—a positive development for the company’s stock prices amid weaker oil prices.
Underperformers among oil-weighted stocks
Now, let’s look at the oil-weighted stocks that underperformed their peers and US crude oil prices in the last four trading sessions:
- Callon Petroleum (CPE) fell 10.3%.
- Carrizo Oil & Gas (CRZO) fell 11.5%.
- California Resources (CRC) fell 14.3%.
These three stocks had correlations of at least 60% with US crude oil active futures. 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% in liquids based on the latest quarterly production data.