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Canadian Oil Stocks Increasingly Bullish Following Unexpected Production Cut

Some analysts donu2019t provide guidance on energy stocks because the outlook for oil and gas can be hard to gauge. But some unexpected news just gave Canadian energy stocks an unexpected boost.<br>Oil prices surged on Monday, April 3 after the Organization of the Petroleum Exporting Countries and their allies (OPEC ) shocked the market by announcing a voluntary cut to its output.

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Canadian Oil Stocks Increasingly Bullish Following Unexpected Production Cut

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  1. 416-510 5560 info@learn-to-trade.com Canadian Oil Stocks Increasingly Bullish Following Unexpected Production Cut From OPEC+

  2. Canadian Oil Stocks Increasingly Bullish Some analysts don’t provide guidance on energy stocks because the outlook for oil and gas can be hard to gauge. But some unexpected news just gave Canadian energy stocks an unexpected boost. Oil prices surged on Monday, April 3 after the Organization of the Petroleum Exporting Countries and their allies (OPEC+) shocked the market by announcing a voluntary cut to its output.

  3. Why Did Oil Prices Jump? • OPEC+, which includes Russia, announced they would be cutting production by an additional 1.16 million barrels a day (bpd) starting in May. This comes on the heels of an announced 2.0 mbp day production cut by OPEC+ members back in November. • At the time, it was thought this would be the only production cut by the cartel. It wasn’t. Including the unexpected March 2023 production cut, total daily output will fall by 3.66 million bpd. That’s a huge reduction, accounting for around 3.7% of global demand. • News of the production cut was actually good news for Canada’s commodity heavy TSX. Canada’s main stock index climbed to its highest closing level in almost one month, ending the day up 178.39 points, or 0.9%, at 20,278.28. This represented the seventh straight day of gains and the highest closing level since March 8. Energy, which is the second largest sector on the TSX, accounts for 16.8% of the index’s total market capitalization. Financials is the largest, at 30%

  4. How High Could Oil Prices Go? • Crude prices are expected to climb a lot higher. The surprise cuts could see oil prices climb above $100 per barrel by this summer. • Those higher prices come at a time when the Bank of Canada, U.S. Federal Reserve, and other central banks are trying to tame persistently high inflation by aggressively raising their interest rates. This puts additional strain on the economy and creates a greater risk of an economic downturn, or recession. • First quarter earnings season is about to kick off in the coming weeks, with big banks being one of the first to report their earnings. These results will give us some indication into the overall health of the economy. Link:- https://learn-to-trade.com/canadian-oil-stocks-increasingly-bullish-following-unexpected-production-cut-from-opec/

  5. 885 Don Mills Road, Suite 200 Toronto, Ontario M3C 1V9 Canada 416-510 5560 info@learn-to-trade.com

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