Cdn Energy Producers Sector Struggles To Keep Pace with WTICPG.TO $3.93 up 0.04 or 1.29% - CAD
CPG.N $2.96 up 0.05 or 1.71% - USD
Clc1 $57.98 up 1.11 or 1.95% - USD
XEG.TO $10.02 up 0.14 or 1.42% - CAD
XLE.N $65.69 up 0.44 or 0.69% - USD
XOP.N $30.01 up 0.63% or 2.18% - USD
Yesterday's oil news has been bullish for the price of oil. However, with de-indexing, pensions, ETFs, index mutual funds, and broad-based portfolio managers will be selling. Expect to see a lot of selling pressure in March, with resistance in the low $4.00 to $4.10 range, and support most likely around the $3.50-$3.80 range.
CPG and other Canadian energy producers in the past had a strong correlation to the price of WTI oil. Mid January there was a divergence to this correlation as the Canadian Energy Sector has now become out of favour for most institutional and income investors. In the past, there was a certain amount of leverage - if oil went up 1%, perhaps you would see a 2% or 3% in increase in CPG - this no longer holds true.
CPG and other Canadian energy producers will need to seek the favour of the Liberal Federal Government, perhaps get some pipelines built, to show insitutional investors, and major corporations, that they are serious about this industry. Perhaps get SNC-Lavalin to build our Eastern Pipeline..