Crude Oil Volatility and Stock Market Performance: A Correlational Study of Energy Companies in the Philippines

This study examined the correlation between crude oil price volatility and the stock market performance of Philippine energy companies, specifically Aboitiz Power Corporation, Semirara Mining and Power Corporation, and San Miguel Corporation. Using historical data from 2021, the study analyzed the relationship between stock prices and the volatile prices of crude oil, including RON 91, RON 95, and Diesel from Petron and Shell. Findings revealed that Aboitiz Power and Semirara Mining exhibited a strong positive correlation with crude oil prices, particularly with RON 95 and Diesel, indicating that increases in oil prices tend to drive stock price growth in these companies. Conversely, San Miguel Corporation demonstrated a moderate negative correlation, which posited that rising oil prices adversely impact its stock value. These results supported previous studies that claimed oil price shocks influenced stock market movement, especially for energy companies. This study also acknowledges that external factors contributed to stock market performance that includes economic downturns, geopolitical tensions, and regulatory changes. The findings offered valuable insights for investors and policymakers managing risks associated with crude oil volatility and developing policies to alleviate its adverse effect on financial markets.