WTI Crude Enters Bear Market: Is It Time For Value-Contrarian Investors To Jump Into Cheap US Oil Stocks?
Portfolio Pulse from Piero Cingari
Crude oil prices have dropped by 20%, entering a bear market, due to concerns of a global demand slowdown. This has impacted energy-related stocks, with the Energy Select Sector SPDR Fund (XLE), SPDR Oil & Gas Exploration and Production ETF (XOP), and VanEck Oil Services ETF (OIH) all experiencing declines. Chevron Corporation (CVX), Exxon Mobil Corp. (XOM), and Schlumberger N.V. (SLB) have also seen declines. However, the decline in energy-related stocks has increased the appeal of traditional valuation metrics, with several large-cap U.S. energy stocks now trading at levels below 10x.
November 08, 2023 | 5:32 pm
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NEGATIVE IMPACT
Chevron Corporation (CVX) has witnessed a monthly decline of 12%, dragging down the overall sector by 2.2 percentage points.
The decline in crude oil prices has directly impacted the performance of CVX, leading to a downward trend in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The VanEck Oil Services ETF (OIH) has faced declines of 12% over the past three weeks.
The decline in crude oil prices has directly impacted the performance of the OIH, leading to a downward trend in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Schlumberger N.V. (SLB) saw a decline of 4.8%, contributing 0.2 percentage points to the sector’s monthly decline.
The decline in crude oil prices has directly impacted the performance of SLB, leading to a downward trend in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Energy Select Sector SPDR Fund (XLE) experienced its fourth consecutive session of declines, reaching levels last seen on July 21.
The decline in crude oil prices has directly impacted the performance of the XLE, leading to a downward trend in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Exxon Mobil Corp. (XOM) fell by only 3%, contributing to a 0.7 percentage point decline in the sector for the month.
The decline in crude oil prices has directly impacted the performance of XOM, leading to a downward trend in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The SPDR Oil & Gas Exploration and Production ETF (XOP) has faced declines of 10.5% over the past three weeks.
The decline in crude oil prices has directly impacted the performance of the XOP, leading to a downward trend in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100