Canadian Stocks Slip, Amid Declining Oil Price, Dragging Producers Lower

Luzi Ann Santos wrote a column · May 11, 2024 02:26

Canadian stocks fell as lower oil prices dragged down the shares of producers of the commodity amid concerns supply could outpace demand.

The $S&P/TSX Composite Index (.SPTSX.CA)$ fell 0.3% to 22,313.93 at 2:08 p.m. in Toronto. The blue chip $S&P/TSX 60 Index (.TX60.CA)$ slid 0.3% to 1336.39.

Decliners outnumbered gainers 796-671, according to data compiled by moomoo. Oil & Gas sector slipped 0.8%, weighing down the index. Software makers, insurance companies and asset managers also saw their shares declined.

Citigroup analysts expect Brent crude, the global benchmark, to slump to $74 per barrel in the third quarter after averaging around $86 per barrel this quarter, according to an Opisnet report. The downward pressure on crude oil could persist after a Russian government official signaled that the Organization of Petroleum Exporting Countries and its allies (OPEC+) could trim their production cuts during the cartel's meeting in June, adding to global supply, the report showed.

$Cenovus Energy Inc (CVE.CA)$ shares slid 0.8% to C$28.18. $Imperial Oil Ltd (IMO.CA)$ and $Tourmaline Oil Corp (TOU.CA)$ also fell.

Gold producers also declined, with $Newmont Corp (NGT.CA)$ down 0.2% to C$58.45 in Toronto trading, while $Barrick Gold Corp (ABX.CA)$ fell 0.3% to C$23.23. The gold miners' stocks traded in New York also slipped.

$Shopify Inc (SHOP.CA)$ led losses among software stocks in Canada, tumbling 5.6%. The stock extended declines that were fueled by disappointing second quarter outlook issued by the company Thursday.

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