It’s been a rough couple of months for Canadian energy equities, that culminated with the worst day in almost 2 years today. The XEG.to energy ETF in Canada fell by almost 5 percent today, reaching lows not seen in over a year. Tariffs and political drama have been off and on over that timeframe, and headlines out of OPEC+ earlier today that the organization was planning to go ahead with its previously guided-to supply increase added to the negative sentiment today. There had been some hope that OPEC+ may delay its previously announced supply increase, as it had done in other similar circumstances over the last couple of years, but that didn’t come to pass today.
The XEG.to ETF closed at $16/share today, its lowest since February 2004. A capitulatory feel was evident, with volume in the ETF the highest since a washout in March of 2023. It was also the single largest daily drop for the ETF since that same period in March 2023….
