Canada energy stocks drop as Colombia elects anti-oil president

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One analyst sees the retreat as a \u0027buying opportunity\u0027

Canacol Energy Ltd. posted the biggest declines among Toronto-listed, Colombia-focused oil producers, dropping as much as 9.3 per cent Monday, marking its biggest intraday decline since May 2020. Parex Resources Inc. and Gran Tierra Energy Inc. fell 11 per cent each. Still, Eight Capital analyst Phil Skolnick said the retreat was a “buying opportunity.”

“We continue to believe it is difficult for radical changes to be made due to the balance of powers in Colombia,” Skolnick wrote in a Monday research note, saying Petro will struggle to push his agenda through a divided congress. Petro has said he wants to halt auctions of new oil and gas exploration blocks. Yet, many operators have assets in regions that likely won’t be affected, said Skolnick, who also noted that 20 per cent of the government’s income is from royalties, dividends and taxes from state-owned oil producer Ecopetrol SA.

Additional private-sector oil and gas companies including Geopark Ltd. could see weakness when U.S. markets reopen Tuesday after the Juneteenth holiday. Skolnick noted that Colombian presidents are “limited to one single four-year term” meaning, “the winner is essentially a lame duck, in our view.”

 

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O colombiano estão chegando.

Our anti-democracy anti-science extremism government just got a new buddy. I guess we should all celebrate and solute our dear leader, another win for exporting our crazed ideology.

And a lot of energy stocks popped. They can't replace an energy source without causing severe inequity.

This makes no sense

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