6 Dec

Which Oil-Weighted Stocks Might Be Most Affected by OPEC Meeting?

WRITTEN BY Robert Scott FEATURED IN Commodities

Oil prices

On December 5, US crude oil January futures fell 0.7% and closed at $52.89 per barrel. The market wasn’t expecting a significant production cut during OPEC’s meeting on December 6, which might have dragged oil prices. On December 5, US equity markets were closed.

Which Oil-Weighted Stocks Might Be Most Affected by OPEC Meeting?

In the last trading session, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) fell 3.2% and 3.1%, respectively. On December 4, the Energy Select Sector SPDR ETF (XLE) fell 2.9%. The fall in the broader market might have hurt energy stocks.

Oil prices are driving oil-weighted stocks

The following oil-weighted stocks could be sensitive to US crude oil movements and could be most impacted by OPEC’s meeting outcome based on their correlations with US crude oil January futures in the past five trading sessions:

  • Oasis Petroleum (OAS) at 76.8%
  • Callon Petroleum (CPE) at 69.8%
  • Carrizo Oil & Gas (CRZO) at 66.1%
  • Apache (APA) at 50.3%
  • Concho Resources (CXO) at 48.6%

In the seven calendar days to December 4, California Resources (CRC) and Occidental Petroleum (OXY) had the lowest correlations of 18.4% and 6.4%, respectively, with US crude oil prices.

All of these oil-weighted stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They have 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.

Latest articles

With AES stock trading close to a decade high, investors must be wondering if the stock has any steam left. In this series, we'll look at its earnings growth, valuation, and outlook.

In another setback for Boeing (BA), China might not buy the company's 737 MAX jets as part of its trade negotiations with the US.

19 Mar

Micron Stock's Ups and Downs

WRITTEN BY Paige Tanner

Micron was the hardest hit by the semiconductor downturn due to weak economic demand arising from the US-China trade war.

19 Mar

What to Expect from CannTrust's Q4 Earnings

WRITTEN BY Adam Jones

CannTrust (CTST) announced that it's scheduled to report its fourth-quarter earnings on March 28 before the market opens.

Yesterday, Apple (AAPL) launched a newly upgraded range of its iPad Air and iPad mini devices ahead of its March 25 special event.

19 Mar

Nike Gears Up to Deliver Its Q3 2019 Results

WRITTEN BY Sharon Bailey

Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 after the market closes on March 21.