Big Oil stocks just can’t catch a break amid ongoing pressure against crude oil. While participating in the broad market rebound in late August, the energy sector has drifted lower over the last three weeks, while the major averages maintained their sideways slide.
Crude oil moved lower again on Monday despite the release of OPEC’s monthly report, in which it upwardly revised its global demand growth outlook to 1.46 million barrels per day — up 84,000 thanks to better-than-expected economic data in developed economies.
The problem was the downward revision to 2016 forecasts, which fell to 1.29 million barrels per day after a drop of 50,000 on flagging economic performance in China and India.
As a result, these five Big Oil stocks look set to continue their persistent downtrends — with the caveat that a surprise “no hike” decision from the Federal Reserve on Thursday could set these names up for a big reversal on the likely weak dollar and strong oil reaction to an extension of near-0% interest rates.
Big Oil Stocks to Watch: Exxon Mobil (XOM)
Of all the energy stocks on this list, Exxon Mobil (XOM) has performed the best over the last three months, with shares down just 14%.
But still, that’s a loss, and while XOM shares rebounded from the Black Monday carnage, it has since moved back to the lower end of its four-week trading range, and looks set for a possible retest of the Aug. 24 lows below $67.50.
Big Oil Stocks to Watch: Chevron (CVX)
Chevron (CVX) shares have been dropping since reporting disappointing quarterly results in late July, with upstream results posting a loss of $2.2 billion vs. the $5.3 billion in segment earnings that were expected. That led to an overall 90% decline in CVX’s earnings for the quarter.
CVX stock is resting on critical support near $75 a share, and a drop here would put the Aug. 24 low of $70 in play.
Big Oil Stocks to Watch: ConocoPhillips (COP)
ConocoPhillips (COP) has already fallen down and out of its four-week trading range near $47.50, and is on track to retest its gapped breakout move near $45 a share.
Shares had stabilized in early August after the company announced a cut to its fiscal 2015 capital expenditure plans, but investors soured on the name as energy prices kept falling.
Big Oil Stocks to Watch: Halliburton (HAL)
Halliburton (HAL) stock showed some glimmers of hope in late July when Halliburton beat earnings estimates.
However, complications with Halliburton’s (HAL) acquisition of Baker Hughes (BHI) have kept investors at bay and helped pushed shares down 27% from their early May high.
Big Oil Stocks to Watch: Schlumberger (SLB)
Schlumberger (SLB) hasn’t gotten much of a lift from the announcement on Aug. 26 that the company would acquire rival Cameron (CAM) in a $14.8 billion deal. Shares are roughly flat since then, and off 15% so far in 2015.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
