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WINNIPEG/TORONTO (Reuters) - Shares of North America’s hard-hit oil and gas producers are climbing sharply as investors bet COVID-19 vaccine rollouts will ease the pandemic’s travel restrictions and revive fuel demand.
FILE PHOTO: A TORC Oil & Gas pump jack is seen near Granum, Alberta, Canada May 6, 2020. Picture taken May 6, 2020. REUTERS/Todd Korol
The gains, which have pushed the Canadian Energy Sector Index up over 40% since Nov. 9, come as oil prices rise well above spring lows and big producers plan to raise spending and output in 2021. However, the bounce still leaves the index down 36% in the year to date.
Investors turn bullish on pandemic-hit North America oil stocks
Shares of North America’s hard-hit oil and gas producers are climbing sharply as investors bet COVID-19 vaccine rollouts will ease the pandemic’s travel restrictions and revive fuel demand.
The gains, which have pushed the Canadian Energy Sector Index up over 40% since Nov. 9, come as oil prices rise well above spring lows and big producers plan to raise spending and output in 2021. However, the bounce still leaves the index down 36% in the year to date.
“Some stocks still have the potential to double next year in our view, even after the sharp rebound of the last five weeks,” said Jean-Louis Le Mee, head of London-based hedge fund Westbeck Capital Management, which owns shares in Canada’s MEG Energy, Whitecap Resources and Baytex Energy.
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WINNIPEG/TORONTO (Reuters) - Shares of North America s hard-hit oil and gas producers are climbing sharply as investors bet COVID-19 vaccine rollouts will ease the pandemic s travel restrictions and revive fuel demand.
The gains, which have pushed the Canadian Energy Sector Index up over 40% since Nov. 9, come as oil prices rise well above spring lows and big producers plan to raise spending and output in 2021. However, the bounce still leaves the index down 36% in the year to date. Some stocks still have the potential to double next year in our view, even after the sharp rebound of the last five weeks, said Jean-Louis Le Mee, head of London-based hedge fund Westbeck Capital Management, which owns shares in Canada s MEG Energy, Whitecap Resources and Baytex Energy.
Friday, December 18th, 2020
Crude oil prices held their gains this week and pushed to new highs. In midday trading on Friday, Brent was over $52. Optimism on vaccinations is outpacing the bearish winds from record Covid-19 infections in the United States. Analysts differ on what happens next, but some say oil has more room on the upside.
Investors turn bullish on North American oil. Having been savaged for much of 2020, stocks for North American oil and gas producers have surged in recent weeks. The Canadian Energy Sector Index is up 40% since November 9, and U.S. energy stocks are having their best quarter since 1989.