Trading the oil spike: These stocks tend to closely follow crude's moves

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West Texas Intermediate futures are up more than 6% this week, after OPEC+ announced production would be cut by more than 1 million barrels per day.

That would also mark crude's first three-week winning streak since December. @CL.1 5D mountain Oil up big this week. Higher oil prices could put upward pressure on inflation and potentially force global central banks to keep rates elevated for longer than anticipated. This could have a negative impact on the broader stock market. However, it could also mean gains for some companies.

Pro looked at the 100-day rolling correlations of S & P 500 stocks to West Texas Intermediate futures to see which names tend to follow oil the closest. We screened for those names with current correlations of 0.5 or more. We also filtered for stocks with average correlations dating back to 2015 of 0.5 or more. In other words, a 1% move on WTI would be associated with a 0.5% gain on the stock. Perhaps not surprising, the 13-most positively correlated stocks to oil are energy names.

 

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