Wednesday, June 17, 2020

CVE.TO stock: the worst does not seem to be over

Canadian energy stocks have been notably weak, given the volatile crude oil prices this year. Cenovus Energy (TSX:CVE)(NYSE:CVE) was among the laggards, losing almost 50% YTD. It suspended dividends and trimmed capital spending for 2020 amid weaker oil and gas prices.

The integrated energy company reported a loss of $1.1 billion during the first quarter. Even though TSX stock Cenovus has remarkably surged from its March lows, the worst does not seem to be over.

Crude oil is expected to trade even more volatile on the back of the supply glut and the declining demand. Importantly, the second wave of the coronavirus could bring fresh troubles for the global energy markets.

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