Oil price is struggling in the absence of any favorable catalyst. The commodity could end the week on a losing streak. Therefore, oil stocks like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), BP plc (ADR) (NYSE:BP) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A) are worth watching on Friday. There is every possibility the oil price could trade below the psychological level of $50 a barrel.
Crude oil price drop slowed on Friday compared to Thursday. However, the commodity closing with a weekly loss is not ruled out. The primary reason behind the negative sentiments is the continued concern on supply glut despite some of OPEC ministers expressing the confidence of reaching a deal on extending the production cut beyond June.
Oil price fell sharply during the week as output from the United States have increased as the rig operators believe that at the current oil price they could make money. Aside from that investors were also surprised with gasoline inventories increase though it stabilized. The corporate earnings announcement also shifted investors to equity market for better realization of investment.
Though gold is also struggling for a gain, the yellow metal is holding strong at $1,280 an ounce level. The precious metal too could be on the losing side this week if the trend extended until the end of the day. At time of writing this, oil is trading down at $50.26 a barrel.
The following oil companies stock is worth monitoring on Wednesday:
- ConocoPhillips (NYSE:COP) is adding 0.83 percent in pre-market.
- Chevron Corporation (NYSE:CVX) is gaining 0.73 percent in pre-market.
- BP plc (ADR) (NYSE:BP) is trading up 0.18 percent in pre-market.
- Royal Dutch Shell plc (ADR) (NYSE:RDS.A) is losing 0.62 percent.
- Total SA (ADR) (NYSE:TOT) added 0.92 percent on Thursday’s normal trading hours.
- Exxon Mobil Corporation (NYSE:XOM) closed Thursday with a gain of 0.65 percent.
- Marathon Oil Corporation (NYSE:MRO) added 0.20 percent on Thursday’s regular trading session.