Following a rough December for Canada’s oil and gas industry, January brought reasons for cautious optimism. WTI prices were up 18% on the month while WCS prices soared by 49%, driven by continued production cuts and a global shortage of heavy oil. Pricing gains were also reflected in the market, as Canadian OFS equities were up nearly 15% compared to a gain of just under 9% for the TSX Composite Index and, surprisingly, almost 8% for the TSX Energy Index. We see this as a sign that markets are beginning to see significant upside in OFS stocks which are still trading at levels comparable to those seen during the worst of the downturn.
