Foreign mutual funds and exchange traded funds (ETFs) sold about $5 billion worth of Canadian oil and gas stocks in the first half of 2024, say researchers at CIBC Capital Markets.
Their analysis spans December 2023 to June 2024, a period where the price of U.S. benchmark West Texas Intermediate (CL=F) rose above US$86 per barrel before dipping into the US$70 range. Oil produced in Canada typically sells at a discount to the price of WTI.
“The extent of selling of Canadian energy stocks raises the question of whether this was a capitulation on Canadian energy stocks, or a broader decision by international [mutual funds] and ETFs to sell fossil fuel stocks,” CIBC analyst Ian de Verteuil wrote in a note to clients on Monday.
He adds that sales of Canadian energy stocks by foreign mutual funds and ETFs in the first half of…
