Checking in with 2 Oil Stocks Amid Sector Slump

XOM and CVX both hit record highs earlier this month

Deputy Editor
Nov 28, 2022 at 10:49 AM
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Oil prices are moving lower today, with West Texas Intermediate (WTI) crude hitting its lowest level since Dec. 21 amid protests in China, the world's biggest importer, over the country's zero-Covid policy. Oil stocks are sliding in tandem, including Chevron Corporation (NYSE:CVX) and Exxon Mobil Corp (NYSE:XOM), which both hit record highs earlier this month. 

Chevron stock is down 2.3% at $179.54 at last glance, despite yesterday's news that the U.S. has expanded its license to allow the company to pump oil in Venezuela again. The equity has seen support at the $177 level in recent weeks, a trendline that appears to be keeping today's pullback in check. CVX has been moving choppily since its Nov. 14 record high of $189.68, and sports 52.9% year-to-date lead. 

At last check, the shares of Exxon Mobil were down 2.9% at $109.99, after yesterday coming within an inch of its recent Nov. 8 record high of $114.66. Familiar support at the $108 level still lingers below. Year-to-date, the stock is up 79.7%. 

It's worth noting that both stocks have been seeing more put volume than usual over the past two weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CVX's 10-day put/call volume ratio ranks higher than 96% of readings from the past year, while XOM's sits higher than all other readings. 

 

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