Weekly "Focus" and Pain at the Pump

Did you see the big jump in gasoline prices this week? I was shocked when I drove over to my local gas station and saw unleaded gas at $1.80 per litre. I guess I should have not been surprised given the run up in oil prices last week to over US$85 per barrel, coinciding with weakness in the Canadian dollar and the higher carbon tax. Oil prices have been supported by tensions in the Middle East and better than expected economic activity in the US. All of this has certainly helped improve the profitability of Canada’s energy sector, with two of Canada’s largest energy companies (Canadian Natural Resources* and Imperial Oil*) trading at all-time highs.

 

		Total Return in 2024		Dividend Yield
Canadian Natural Resources* (CNQ)		+23.4%		4.0%
Cenovus Energy* (CVE)		+31.0%		1.9%
Imperial Oil* (IMO)		+26.4%		2.5%
Suncor* (SU)		+25.7%		4.1%

Source: FactSet, Values as of April 18, 2024

 

This week’s "Focus" from our economics team is attached.

 

Have a great weekend,

 

Brad

Senior Portfolio Manager and Senior Investment Advisor