Oil Trade

Summary 

A Rise in Oil Price Could Benefit CAD and Energy Stocks

In the scenario that oil price see another boost, both CAD and energy stocks may see room for outperformance. In such an environment, there may be value in increasing exposure to the energy sector and Canada more generally. Positioning for this is possible via buying or overweighting S&P/TSX 60 Index* Standard Futures (SXFTM), particularly energy sector futures, as well as the equivalent options and junior oil companies on the TSXV.

To read the entire article, click the button below:

Related Articles

  • May 20, 2025
    June futures first notice falls on May 30th, with first delivery on June 2nd, 2025. Roll dates from June to September contracts are expected between May 27-29th, with no holiday disruptions. The overnight repo rate stands at 2.75%, projected to decrease by 0.25% by September. For Montréal Exchange fixed income contracts (excluding 30-year), CTD bonds with 2.75-3% coupons incentivize late delivery due to potential carry earnings.
    May 6, 2025
    A historic shift is occurring in the long-standing economic relationship between Canada and the United States. While mean reversion trades between the two economies have been reliable in the past, this traditional correlation is slowly unwinding after 30-40 years of close ties. This decoupling, though gradual, signals fundamental changes in trade patterns, bond market correlations, and cross-currency relationships.