How big oil stocks perform in 2011 will be highly dependent on the price of crude oil. That’s not a particularly original thought, but it remains true nonetheless. The price of crude fluctuated from below $65/barrel in May of this year to above $91/barrel in the past week. It’s no coincidence that shares in Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), and ConocoPhillips Corp. (NYSE: COP) posted new 52-week highs earlier this week. Royal Dutch Shell plc (NYSE: RDS-A) posted a 52-week high in early November, and BP plc (NYSE: BP) has still not recovered from the Gulf Oil spill although shares have jumped more than 60% since BP’s 52-week low in June.
We noted yesterday that the big oil companies are expected to spend more than $100 billion in exploration and production activities in 2011. The big jump reflects the companies’ expectations that prices will stay high, certainly above $80/barrel for 2011.
Here’s a short table showing the tickers, the current price, the mean target price from Thomson Reuters, the implied upside to that target, and the 52-week trading range. We’ll add some color after the chart.
|Stock||Current||Mean Target||Implied Gain||52-week Range|
|XOM||$73.37||$74.77||0.019||55.94 – 73.69|
|CVX||$91.37||$94.88||0.038||66.83 – 92.39|
|COP||$67.93||$64.35||-0.05||46.63 – 68.30|
|RDS-A||$66.45||$73.00||0.099||49.16 – 68.55|
|BP||$43.95||$46.66||0.061||26.75 – 62.38|
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