RE:RE:Why Enbridge Should Trade Higher! Neither the people on this board nor the author of the article are experts.
The higher demand for oil has made the oil price increase. Midstreamers make money off of higher volumes that higher demand creates. They see some but very little increase in revenue due to commodity price increases in general.
The oil price for the near future will no longer dictate midstreamers profits as demand and pipes will remain full regardless of price for the near futre. Even when the SPR releases $1 million barrels per day it still has to be shipped to its final destination.
ENB's share price fluctuates as it is swing traded like crazy. I am not sure how they do this with such a large market cap stock but they do and they seem to take advantage of easy and obvious market indicators like the price of oil in order to do it.
I posted this, "puff piece" because I think ENB is a great stock to hold right now but aside from the people that want to jump in for a steady and safe 6% (which looks great right now) I am not sure where the share price growth is coming from.
The expansion of their storage facility in the gulf along with making it carbon neutral is good start.
The buldling of the offshore windfarm in France also adds to the ESG and should add to the bottom line.
I would like to see them stick their necks out and push for some LNG either on the West coast or in Central Canada with an eye on supplying Europe and Asia. High demand, high returns and justifiably carbon friendly in Europe's new definiton of green. A really bold move would be to put it on the North coast where chilling the product for liquifaction is much easier with a windfarm on that coast to power it. I'm not sure how much the 45000 inhabitants of the NWT would compalin but it is less opposition than BC and Eastern Canada.
However ENB's share price is going to go up is open for debate. It going down really isn't.
Not to me. It is practically a 6% guarantee.
Go Enbridge! ;-)
FiddyFiddyOddzz wrote: "Undoubtedly, higher oil and gas prices are good for the Enbridge stock.
Therefore, it is no coincidence that the year-to-date jump in Canadian midstream energy shares went hand in hand with the subsequent rally in the fossil fuel market."
Ummm, but wait a second, for years on this board the "experts" have been posting oil prices have NOTHING to do with the price of Enbridge shares. Either the author of the article is wrong, or the "experts" on Stockhouse are wrong, hmmmmm, I wonder which it is....
Quin wrote:"Why wouldn't it?
https://www.tipranks.com/news/article/why-enbridge-should-trade-higher/
Go Enbridge! ;-)"