Five Canadian oil & gas stocks that slipped below our fair value estimates

WTI crude oil has fallen nearly 30% in value over the past six weeks, dragging down the share price of oil and gas companies.

Ruth Saldanha 14 November, 2018 | 6:00PM
Facebook Twitter LinkedIn

Oil is rebounding today after a fall that wiped out around 28% of the value of West Texas Intermediate crude over the past six weeks. On Monday, WTI crude fell 8%.

Morningstar senior equity analyst Dave Meats said that the latest oil price declines came after OPEC reported overall production growth of 127 million barrels per day in October, noting that the supply shortage fears that drove up crude prices earlier this year now look overblown.

"In fact, key OPEC producers are now contemplating the need for further production cuts next year to avoid a glut forming instead," Meats said in an analyst note, cautioning that further volatility is likely, as OPEC's remaining spare capacity is unknown, and it's possible that steep declines are still on the way for Iran and Venezuela -- not to mention Angola, Libya and Nigeria.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Canadian Natural Resources Ltd52.87 CAD0.92
Cenovus Energy Inc14.50 CAD0.83
Enbridge Inc52.96 CAD0.65Rating
Ovintiv Inc48.35 CAD1.77
TC Energy Corp68.02 CAD0.62Rating

About Author

Ruth Saldanha

Ruth Saldanha  is Senior Editor at Follow her on Twitter @KarishmaRuth.


© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy