Oil Trade

June 29, 2022   |   
Author: Bilal Hafeez

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

  • U25-Z25 Roll Update (CGZ, CGF, CGB & LGB)
    August 21, 2025
    September futures contracts face first notice August 29 and first delivery September 2, following the Labour Day holiday. The holiday timing prompts early roll trades as managers and dealers attempt to close September contracts ahead of schedule, creating optimal liquid roll dates between August 25 - 27. The holiday period typically creates more volatile roll pricing as market participation shifts. Additionally, futures have been trading rich to bonds since July, further complicating execution. Timing options will be active for CGZ and CGF contracts this quarter.
    Canada Swap Spreads
    August 13, 2025
    After a 43-basis-point tightening over 13 months, Canadian 5-year swap spreads are showing signs of stabilizing, opening up new opportunities in fixed-income markets. This tightening reflects changes in risk appetite, government bond issuance, and mortgage market hedging practices. While economic uncertainties persist, current spread levels suggest a potential for mean reversion, particularly when compared to historical trends. This market development provides tactical entry points for relative value strategies.

TMX Group Limited and its affiliates do not endorse or recommend any securities issued by any companies identified on, or linked through, this site. Please seek professional advice to evaluate specific securities or other content on this site. All content (including any links to third party sites) is provided for informational purposes only (and not for trading purposes), and is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The views, opinions and advice of any third party reflect those of the individual authors and are not endorsed by TMX Group Limited or its affiliates. TMX Group Limited and its affiliates have not prepared, reviewed or updated the content of third parties on this site or the content of any third party sites, and assume no responsibility for such information.

Copyright © 2025 Bourse de Montréal Inc. All rights reserved.
Canadian Derivatives Exchange is an official mark of Bourse de Montréal Inc.