Q: Hello
Canadian Oil/Gas names and pipelines stocks have retreated this week, possibly, in reaction to news of Trump's proposed tariffs on Canada.
What is the likelihood of these tariffs actually being put in place, with specific reference to Oil and Gas exports to US from Canada ?
If worse happens, would these levies impact Oil/Gas producers/integrated names and pipelines differently ?
Do you consider this week's pullback in these names, as an opportunity to increase exposure to these names and if so, in what order ?
( Noted that 5i bumped SU weight in Bal portfolio, Tuesday )
Thanks
Canadian Oil/Gas names and pipelines stocks have retreated this week, possibly, in reaction to news of Trump's proposed tariffs on Canada.
What is the likelihood of these tariffs actually being put in place, with specific reference to Oil and Gas exports to US from Canada ?
If worse happens, would these levies impact Oil/Gas producers/integrated names and pipelines differently ?
Do you consider this week's pullback in these names, as an opportunity to increase exposure to these names and if so, in what order ?
( Noted that 5i bumped SU weight in Bal portfolio, Tuesday )
Thanks
5i Research Answer:
SU and ENB have some degree of US operations already, so have a bit of insulation here. In terms of pipelines, there are already capacity issues and we would not see that side of the business impacted much. In fact, Trump might be more lenient to new pipeline development, which could be a positive. Oil is globally priced, and we think prices will still be more important than tariff impacts. Right now, the tariff talk is talk, and policies put in place could be very different. There is at least some of the uncertainty priced into these stocks already, and we would, as noted, still be comfortable buying.