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Enbridge Inc. (ENB $62.71)
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Canadian Natural Resources Limited (CNQ $42.38)
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Constellation Energy Corporation (CEG $338.63)
Q: First, thank you for all your posted and individual guidance in 2025. It is very useful and comforting.
Fuel prices at the pump are now quite low and the Venezuela takeover has shocked the sector.
I am wondering about these 3 oil related stocks which have all dropped today. Do you see the sector going downhill and if so, what are the reasons, and whether or not a reversal of those same issues would lead to an increase in sector performance. Or is there any other new information on these stocks which could lead them to continue to slide.
Many thanks and Happy 2026 to your entire team at 5i.
Fuel prices at the pump are now quite low and the Venezuela takeover has shocked the sector.
I am wondering about these 3 oil related stocks which have all dropped today. Do you see the sector going downhill and if so, what are the reasons, and whether or not a reversal of those same issues would lead to an increase in sector performance. Or is there any other new information on these stocks which could lead them to continue to slide.
Many thanks and Happy 2026 to your entire team at 5i.
5i Research Answer:
Please see our 'energy' section for more discussion on the topic. We see no material news from the companies. The sector may stay volatile, but we think the initial reaction was a bit harsh. Yes, Venezuela could add supply. But after years of infrastructure neglect it is not quite as simple as turning on the taps. The Canadian sector is in good financial shape already and priced well. We do not think the pipelines will see a material impact. We do not think investors need to be a 15% (where the TSX allocation is) but some representation we think still makes sense.