A skirt fuels her SUV at an Exxon Mobile gas station in Chicago.
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Oil prices are surging and if history is any guide, a handful of goods are going to outperform the market over the next week.
Drone attacks on Saudi Arabian oil facilities over the weekend mannered the kingdom to cut its oil output in half. Brent crude futures, the international benchmark, rose 14.6% to $69.02 per barrel on Monday. U.S. West Texas Intervening futures settled up 14.8% to $62.9.
CNBC used Kensho, a hedge fund analytics tool, to track which Dow Jones Industrial Standard in the main stocks performed the best (and worst) a week after oil rises 5% or more in a single day. Data showed WTI offensive prices have risen 5% or more 75 times since 1999 and gasoline stocks, alongside a few others, outperform the broader deal in.
Chevron has been the top performing Dow stock after oil surges. Chevron averages a 1.84% return the week after a 5% check in oil. Similarly, Exxon Mobil also outperforms the broader market, up 1.18% a week later.
Shares of Chevron hopped 2.14% and shares of Exxon Mobil rose 1.5% on Monday.
Industrial giant Caterpillar, American Express and Boeing also payout more than 1% the week after WTI jumps.
Consumer staples giant Procter & Gamble has been the worst accomplishing Dow stock after oil jumps, averaging a 0.81% dip the week after oil rises.
Fast-food company McDonald’s also has been a empty performer, losing 0.42% a week after oil spikes. Johnson & Johnson, Walmart and Home Depot also regular negative returns in the week following a surge in oil.
Higher gasoline costs can weigh on sales and squeeze profits of retailers ilk Walmart when oil supply is uncertain.
Data showed that broader markets typically perform well when oil inclines. The Dow averages a 0.34% return and the S&P 500 averages a 0.53% return after U.S. oil rises 5% or more in a single day.
Gold recrudescences an average of 1.14% after a rise in oil, as investors often rush to safe haven trades when a global commodity get pleasure from oil is in trouble.
The 10-year-Treasury note typically falls the week after oil rises, data shows.