What stocks go up when oil goes down?
We use petroleum products to propel vehicles, to heat buildings, and to produce electricity. In the industrial sector, the petrochemical industry uses petroleum as a raw material (a feedstock) to make products such as plastics, polyurethane, solvents, and hundreds of other intermediate and end-user goods.
- Agencies. 1/6. Oil on boil. ...
- ETMarkets.com. 2/6. ONGC. ...
- Agencies. 3/6. Indraprastha Gas. ...
- Agencies. 4/6. Oil India. ...
- ETMarkets.com. 5/6. Petronet LNG. ...
- ETMarkets.com. 6/6. Engineers India.
We use petroleum products to propel vehicles, to heat buildings, and to produce electricity. In the industrial sector, the petrochemical industry uses petroleum as a raw material (a feedstock) to make products such as plastics, polyurethane, solvents, and hundreds of other intermediate and end-user goods.
| Name | Price | Analyst Consensus |
|---|---|---|
| XOM Exxon Mobil | $120.56 | 11 Buy 5 Hold 0 Sell Moderate Buy |
| CVX Chevron | $161.92 | 13 Buy 3 Hold 0 Sell Strong Buy |
| COP Conocophillips | $129.33 | 16 Buy 3 Hold 0 Sell Strong Buy |
| EOG EOG Resources | $133.90 | 11 Buy 11 Hold 0 Sell Moderate Buy |
| Natural Gas Stock | Ticker Symbol | Description |
|---|---|---|
| Cheniere Energy | (NYSEMKT:LNG) | One of the world's largest liquefied natural gas (LNG) exporters. |
| EQT Corporation | (NYSE:EQT) | The largest natural gas producer in the U.S. |
| Kinder Morgan | (NYSE:KMI) | One of the largest natural gas infrastructure companies. |
But shares of oil and gas companies tend to do well when rates are elevated. Energy is the S&P 500 sector with the highest propensity to outperform when rates are high, according to RBC Capital Markets data going back to 2010.
The crude oil and stock market relationship is inversely proportional to most oil stock prices. More oil prices mean higher costs for businesses, which cuts into their income and slows down the market as a whole, according to the standard story.
In 1882, Standard Oil Trust created a network of Standard Oil companies throughout the country, led by a board of trustees, where Rockefeller owned over one third of the certificates. By the late 1880s, Standard Oil controlled 90% of American refineries.
| # | Country | World Share |
|---|---|---|
| 1 | United States | 20.3 % |
| 2 | China | 13.2 % |
| 3 | India | 4.6 % |
| 4 | Japan | 4.1 % |
World Oil Reserves
The world has proven reserves equivalent to 46.6 times its annual consumption levels. This means it has about 47 years of oil left (at current consumption levels and excluding unproven reserves).
What oil stocks is Buffett buying?
In retrospect, Berkshire Hathaway's 2022 purchase of Occidental Petroleum was a brilliant decision. Berkshire Hathaway's (BRK. A 0.36%) (BRK. B 0.21%) 2022 re-entry into a position in oil giant Occidental Petroleum (OXY -1.26%) wasn't exactly expected.
- Chevron.
- EOG Resources.
- ExxonMobil.
- Kinder Morgan.
- Phillips 66.
- Devon Energy DVN.
- Hess HES.
- HF Sinclair DINO.
- Schlumberger SLB.
- Chevron CVX.
- Cheniere Energy: It's the leader in producing and exporting LNG in the U.S.
- Chevron: The U.S. giant has a large and growing LNG portfolio.
- ExxonMobil: The U.S.-based supermajor has interests in LNG projects around the world that produce 23 million tons annually.
- To benefit from the growth potential in the energy sector, some of the best stocks to buy include Chevron Corporation (NYSE:CVX), Occidental Petroleum Corporation (NYSE:OXY), and Exxon Mobil Corporation (NYSE:XOM).
- PG&E Corporation (NYSE:PCG) operates through its subsidiary, Pacific Gas and Electric Company.
Top dividend stock TC Energy is headquartered in Calgary, Alberta, and operates one of the largest pipeline networks in North America. The company transports over 25% of North American natural gas and also transports crude oil to the U.S.
Coming off a year of negative returns in 2023, energy stocks are off to a better start in 2024. Although it modestly lags the broader stock market on a year-to-date basis, the energy sector is producing gains so far this year. Energy prices are a mixed bag, with oil prices up while U.S. natural gas prices are down.
"While energy stocks have had a slow 2023, I believe 2024 could be bright," writes Maurice FitzMaurice, sector portfolio manager at Fidelity. "Crude oil prices are likely to remain elevated in 2024 – driven by tight supply, increased geopolitical risk, and strengthening global demand for energy.
Industrial stocks span aerospace, defense, logistics, and machinery sectors, supporting infrastructure. Top picks: Waste Management, FedEx, Lockheed Martin, Caterpillar, 3M. Resilient, innovative, and sustainable for long-term investment.
Higher crude oil prices push the operational expenses for the airline companies higher. In the Paint category stocks, Berger Paints India was down 3 per cent to Rs 501, while Kamdhenu Ventures, Indigo Paints, Sirca Paints and Asian Paints dropped 2 per cent each.
What is oil correlated to?
Crude oil and the US dollar often have an inverse relationship, meaning that when the value of the US dollar decreases, crude oil prices tend to increase, and vice versa. This is because crude oil is priced in US dollars, so a weaker dollar means it takes more dollars to buy the same amount of oil.
It is a commonly held belief that high oil prices directly and negatively impact the U.S. economy and the stock market. A recent study, however, suggests that oil prices and stock prices actually show little correlation over time.
Who Owns the Oil and Gas in the U.S.? Oil and gas resources in the United States are generally privately owned, not by governments as in some other parts of the world. The high oil prices have helped U.S. oil companies like ExxonMobil and Chevron post bumper profits.
Rockefeller and his family established the Rockefeller Foundation in 1913, which supported public health causes through a large endowment. He also used his money to establish the University of Chicago and the Rockefeller Institute for Medical Research.
Saudi Aramco is the world's largest oil company based on daily oil production. In the 2022 fiscal year, Saudi Arabia's state-owned oil company reported a crude oil output of some 13.6 million barrels per day.
