Alberta Wildfires Shut Down About 7% of Canada's Oil Production
Wildfires in Canada's energy heartland of Alberta have shut down almost 350,000 barrels of daily heavy crude production — about 7% of the country's output — as a major blaze near the province's eastern border menaces oil sands operations.
Cenovus Energy Inc., MEG Energy Corp. and Canadian Natural Resources Ltd. are among the companies that curtailed output because of the 61,500 hectare blaze near the Saskatchewan border. The so-called Caribou Lake Wildfire and other out-of-control blazes at least 10 hectares in size were within roughly 10 kilometers of about 470,000 barrels a day of oil production early Monday.
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3 remarkable winners amid an unseen surge
Oil prices have been falling as OPEC increases production. Like Trump with trade, the cartel is looking to re-shape the chess board. Here's what investors need to know This story originally appeared on WallStreetZen The dominant story of 2025 has been President Trump using tariffs to restructure global trade. So, many investors are missing another major development as OPEC has been increasing oil production. Notably, this increase in production has come about despite already weakening oil prices. This is not an accident as OPEC is looking to increase its market share. Over the last decade, steadily rising US shale oil production has eroded OPEC's control of the market and resulted in the US becoming a net exporter of energy. WTI Crude oil started the year at around $74 per barrel and currently trades below $60 per barrel. However, shale oil production is only viable at prices above $70 per barrel. 2020 and 2014 The last two major instances of OPEC members increasing oil production were in early-2020 and 2014. And, both instances marked the beginning of multi month declines in oil prices. In 2014, WTI crude dropped from $105 per barrel in June 2014 to below $55 by the end of the year. The major impetus for this increase was the growth in US shale production which was starting to affect OPEC's market share and pricing power. In early 2020, Saudi Arabia decided to increase oil production in an effort to discipline other OPEC members who were not abiding by the cartels' production quotas. As the chart below shows, this resulted in oil prices sliding lower and eventually collapsing as the pandemic temporarily crippling oil demand. Both experiences contain important lessons for investors. 2025 In its first production surge, OPEC didn't materially cut back on supply increases until there was a material decrease in rig counts and shale production. 2020 gives us few clues, since the production surge ended quickly, once the nature and challenge of the pandemic became clear in early March. However, the biggest takeaway is that investors should not ""fight OPEC." A common adage on Wall Street is "don't fight the Fed." Essentially, this means don't be bearish when the Fed is aggressively easing or don't be overly bullish if the Fed is tightening policy. Similarly, investors should have a more risk-averse approach when investing in oil, whenever OPEC is increasing production. What Opportunities Does the OPEC Surge Create? Instead, investors should focus on the consequences of a multi month decline in oil prices, as these are where investment opportunities can be found. For instance, many airline stocks enjoyed spectacular rallies in 2014 and 2015 as lower oil prices boosted margins and profits. In 2020, many shippers enjoyed huge gains as the world was awash in excess oil which had to be stored and transported. Investors should identify stocks with strong fundamentals that have strong quantitative ratings. Then, they can narrow down this list of stocks to find the ones that will benefit from this specific catalyst. The Zen Ratings can help you screen for these stocks. For instance, investors can screen for stocks with an overall A or B rating along with strong component grades for defensive categories like Safety, Value, or Financials. Currently, there are a handful of stocks that fit this criteria. In today's article, I want to discuss 3 companies: United Airlines (UAL), CVR Partners (UAN), and Hallador Energy (HNRG). 1. United Airlines (UAL) United Airlines (UAL) is a major beneficiary of lower oil prices as it reduces costs, boosts margins, and leads to an increase in consumer spending. As oil prices dropped by more than 50% between June 2014 and February 2015, UAL's stock was up by nearly 70%. UAL also brings outstanding financials given a solid balance sheet, low debt-to-equity ratio, and a rock-bottom forward P/E of 6.6 which is significantly cheaper than the S&P 500's forward P/E of 22. The company is also well-regraded by Wall Street analysts as it has 8 Strong Buy ratings and 3 Buy ratings with no Sell or Hold ratings. It also has a consensus price target of $103 which implies 30% upside. Another indication of strong performance is that the company has topped analysts' earnings expectations for 11 straight quarters. Similarly, the Zen Ratings are also bullish on the stock as it has a Strong Buy (A) rating. 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