Oil-weighted stocks’ returns
On June 12–19, our list of oil-weighted stocks rose 5.6%—compared to the 5.1% rise in US crude oil August futures. On average, our list of oil-weighted stocks outperformed US crude oil prices.
Occidental Petroleum outperformed oil-weighted stocks
Let’s take a look at the oil-weighted stocks that rose the most in the last five trading sessions:
- Oasis Petroleum (OAS) rose 16.7%.
- California Resources (CRC) rose 13.5%.
- Denbury Resources (DNR) rose 12.3%.
Oasis Petroleum and California Resources were among the stocks that had the highest correlation with US crude oil futures. Denbury Resources had a correlation of 67% with oil prices in the trailing week.
Oasis Petroleum operates with a production mix of 72% in oil. On June 13, Moody’s upgraded Oasis Petroleum rating to “B1.” On the same day, Oasis Petroleum’s stock prices rose 5.6%. The attack on a tanker in the Middle East pushed WTI crude oil 2.2% higher on June 13.
Underperformers among oil-weighted stocks
Now, we’ll discuss the oil-weighted stocks that underperformed their peers and US crude oil prices in the last five trading sessions:
These three stocks had correlations of at least 53% with US crude oil active futures. However, despite a higher correlation with oil, the contraction in the Brent-WTI spread might have limited the upside in ConocoPhillips’ share prices. In the trailing week, the Brent-WTI spread fell by $0.77.
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.