Enbridge (ENB) and CVE: 2 TSX oil stocks to watch amid IMF forecast

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Enbridge (ENB) and CVE: 2 TSX oil stocks to watch amid IMF forecast

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Enbridge (ENB) and CVE: 2 TSX oil stocks to watch amid IMF forecast
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Highlights

  • Volatility in the oil market continued as International Monetary Fund (IMF) reduced its global growth projections.
  • Oil prices slightly rebounded on Wednesday as supply concerns from production outages in Libya continued to weigh on the market.
  • ENB scrip surged by about 25 per cent in a year while CVE stock rocketed by nearly 130 per cent in 12 months.

Volatility in the oil market continued as International Monetary Fund (IMF) reduced its global growth projections on Tuesday, April 19, considering the ongoing war effects, China's renewed COVID rules and central banks' interest rate hikes. 

Oil prices reportedly fell at one point on Tuesday following IMF's announcement. However, oil prices slightly rebounded at the time of writing on Wednesday, with West Texas Index (WTI) climbing to around US$ 103 per barrel and Brent Crude hovering around 108 per barrel. This change came as supply concerns from production outages in Libya continued to weigh on the market.

With these fluctuations in oil prices in mind, let us explore two TSX oil stocks.

Enbridge Inc (TSX: ENB)

Enbridge Inc is known for its midstream operations in the United States and Canada. Recently, the provincial government of Alberta awarded the company the right to advance a carbon dioxide (CO2) hub in Edmonton, Alberta.

The energy infrastructure provider generated C$ 2.48 billion in distributable cash flow (DCF) in Q4 2021 against C$ 2.2 billion in Q4 2020.

ENB scrip surged by about 25 per cent in the past 12 months and closed at C$ 58.57 per share on Tuesday, April 19.

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

Cenovus Energy Inc (TSX: CVE)

Cenovus Energy earned C$ 2.18 billion in cash from operating activities in the fourth quarter of 2021, which was a positive change of 774 per cent year-on-year (YoY). However, its net loss stretched to C$ 408 million in the latest quarter, up from C$ 153 million a year ago.

CVE stock rocketed by nearly 130 per cent in 12 months and closed at C$ 22.65 apiece on April 19.

 Enbridge Inc (TSX: ENB)’s Q4 2021 results

Bottomline

The IMF’s latest global economic outlook marked down Canada’s growth forecast by 0.2 percentage points to 3.9 per cent for 2022 and 2.8 per cent for 2023.

With this new outlook, investors can explore Enbridge Inc and Cenovus Energy as these are large-cap companies and distribute dividends every quarter. However, investors should consider market updates, a company's operations and financials to make informed investment decisions.

Also read: URC, EU and ISO: Why did these 3 TSXV uranium stocks surge higher?

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