It’s been a terrific year for energy stocks, with oil prices holding their own above US$75 per barrel for most of the year. Undoubtedly, Russia’s invasion of Ukraine was a horrific occurrence that nobody saw coming. The impact on oil prices was considerable. As the Ukraine-Russia crisis drags into 2023, there’s a good chance that the “war-time premium” attached to the price of oil could remain. With a cap on Russian crude that could keep global energy markets propped up, even as the storms of recession move in, 2023 could be another solid year of returns for the world’s top energy producers. Despite the upbeat environment for energy producers , shares of many top names, including Canadian Natural Resources ( TSX:CNQ ) and Suncor Energy ( TSX:SU ), are commanding pretty modest single-digit price-to-earnings (P/E) multiples in the seven to eight range. There’s a lot of downside risk already baked in. Though commodity price movements are very hard to predict, there are questions as to how oil prices will fare as the economy tilts into a downturn. Further, the removal of the “war-time premium” is also a growing possibility, as the Ukraine-Russia crisis could be resolved in 2023. Top […]
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