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While crude oil has again started to march towards triple-digit levels, TSX energy stocks seem ready to soar higher, too. The recent rally is much along the expected lines after months-long weakness. One of the top gainer TSX stocks, MEG Energy ( TSX:MEG ), lost 16% last month, in line with its peers. Moreover, it looks well placed to outperform in the next few months. Crude oil prices have declined for months and lost 30% since June. Since energy producersâ earnings are directly impacted by oil and gas prices , they were also weak. Â Driven by aggressive interest rate hikes and record-high inflation, there is a strong possibility that we might see a more severe global recession soon. A long-lasting economic downturn significantly dents energy demandâa potential bear signal for crude oil prices. As a result, oil and gas prices were weak for months. At the same time, there has also been strong rhetoric that energy demand will not be hampered much, even in the case of a severe recession. However, this view seems to have been overlooked by energy market participants. Fundamentally, there is concern about the supply-demand imbalance at the moment in the global energy markets, […]
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