Source: Getty Images After being written off during March 2020, when oil prices went negative during the onset of the COVID-19 pandemic, the Canadian oil and gas industry has staged a terrific comeback to literally carry the S&P/TSX 60 in 2022. While the U.S. S&P 500 is down nearly 19%, the S&P/TSX 60 lost just 9% thanks to the outperformance of these stocks. Chief among them was Tourmaline Oil ( TSX:TOU ), which ended 2022 with an astonishing 51.3% return. High volatility and the prospects for large gains (or losses) are not unusual in the oil and gas industry. Still, TOU’s performance in 2022 is worthy of scrutiny. What exactly happened? Why Tourmaline rose 2022’s market conditions were notable not only due to rising interest rates but also rampant inflation. Defined as a percentage increase in the price of a common basket of goods and services as measured by the Consumer Price Index (CPI), Canadian inflation hit a year-over-year high of 8.1% in June 2022. One of the most sensitive asset classes when it comes to inflation is commodities, which includes things like natural gas and crude oil. The price of these commodities tends to surge when inflation does. […]
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