CNQ and TRP: TSX oil stocks to watch as IEA drops demand projection?

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CNQ and TRP: TSX oil stocks to watch as IEA drops demand projection?

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CNQ and TRP: Are these 2 TSX oil stocks a buy as IEA drops demand projection
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Highlights

  • The Canadian stock market has some oil players like Canadian Natural Resources (TSX: CNQ) and TC Energy Corporation (TSX: TRP).
  • IEA dropped its global oil demand expectations in Q2 2022 and 2022 as China again imposed lockdown restrictions to limit the resurgence of COVID.
  • The Canadian energy index outperformed other sectors, with the TSX energy index gaining over 41 per cent in 2022.

Canadian oil stocks like Canadian Natural (TSX: CNQ) and TC Energy (TSX: TRP) could gain momentum in the wake of the International Energy Agency's (IEA) recent move.

The IEA has reportedly dropped its global oil demand expectations in Q2 2022 and 2022 as China again imposed lockdown restrictions to limit the resurgence of coronavirus cases.

This revision in demand projections came as the agency saw weaker-than-expected demand in the Organization of Economic Corporation and Development (OECD) in 2022.

On that note, let us quickly look at the following TSX oil stocks.

Canadian Natural Resources Limited (TSX: CNQ)

Canadian Natural recorded net earnings of C$ 2.53 billion and adjusted funds flow (AFF) of C$ 4.33 billion in Q4 FY2021.

The oil and gas company's annual net profit increased significantly to C$ 7.66 billion in 2021 from a loss of C$ 435 million in 2020. Meanwhile, the CNQ stock swelled by nearly 115 per cent in the last 12 months.

 Canadian Natural (TSX: CNQ) 's Q4 FY2021 results

 

Also read: Canada Budget 2022 gives housing $10B: 2 TSX real estate stocks to buy

TC Energy Corporation (TSX: TRP)

TC Energy posted a net profit of C$ 1.1 billion and a comparable EBITDA of C$ 2.4 billion in Q4 2021. In the latest quarter, its net cash provided by operating activities amounted to C$ 1.8 billion.

TRP stock increased by almost 23 per cent year-over-year (YoY).

Bottom line

Investors may find oil stocks like Canadian Natural and TC Energy a profitable venture, mainly due to the oil price surge. However, different elements could impact a company's stock prices. Hence, it is essential to analyze all factors before investing in an oil stock.

Also read: RioCan & TCN: TSX housing stocks to buy as Toronto home prices rise 18%

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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