Poor performance of the index is tied to lower than expected OPEC production cuts, as well as larger than expected OPEC oil exports in June
It has been a rough couple of months for the Ubika Energy Index (UE20), as it has declined an average of 14.2% since our last report, underperforming its benchmark S&P/TSX Capped Energy Index, which fell 12.6% and the WTI oil price, which declined 4.1%. The poor performance of the index is tied to lower than expected OPEC production cuts, as well as larger than expected OPEC oil exports in June. Of the 20 companies in the Ubika Energy index, only one is in the green – Corridor Resources Inc. (TO:CDH).
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. To read more of this Disclaimer please click on the button below: