Oil futures hit their highest levels in 2016 this week, while natural gas suffered extreme losses. Market sentiment was hurt due to the failed production talks in Doha over the weekend that resulted in no progress to slow down the oil glut that has caused oil prices to slump over the last year.
Oil and gas stocks have fared quite well on the week despite the issues in Doha.
Chevron Corp (CVX)
Chevron started the week with an agreement to sell gas from the company’s Wheatstone facility in Western Australia to Alinta Energy. The deal between the two will result in Chevron selling gas to Alinta between 2020 and 2027, with sales of 20 petajoules of natural gas being supplied annually.
Chevron’s stock is down slightly on the day, but has risen steadily all week. The stock hit a low on Monday of $95.76 during early morning trading and has since risen to $101.47 a share in early morning trading on Thursday.
Exxon Mobil Corp. (XOM)
Exxon Mobil announced earlier in the week that R.W. Tillerson, CEO and Chairman, had his compensation reduced by 18% year-over-year to fall to just $27.3 million in 2015. The company’s stock has suffered majorly due to poor oil prices, with earnings in 2015 falling by 50.2% and Q4 2015 earnings falling by 57.6%.
Tillerson’s lower compensation is a move to reduce costs for the company and has received applause by investors.
The company’s stock hit a low on Monday of $83.86 and is up 0.36% on Thursday, currently trading at $87.10. Exxon has rallied over the past 90 days, starting at $74.10 a share and up $13 in 90 days.
Hess Corp. (HES)
Hess reported early in the week that the energy producer has sold 175,000 barrels of Bakken crude to Europe. The sale marks the first shipment of North Dakota oil sold by the company since the ban on crude oil exports was lifted by Congress in December 2015.
Hess stock is struggling on Thursday, down 1% on the day, but the stock has performed well over a 90 period. Hess rallied from $55.42 to start the week, up nearly 10% in the first three days of the week.