BOE Report

Canadian energy equities suffer worst two day drop in 5 years as tariffs, trade wars and surprise OPEC+ supply increases spark massive panic selling

Canadian Energy stocks were swept up in the carnage facing most markets around the world since the implementation of worldwide tariffs by the Trump administration on Wednesday afternoon.

The XEG.to Canadian energy ETF suffered its worst 2 day drop in more than 5 years on massive volume, a type of drop not seen since the hectic days of COVID lockdowns. In fact our chart doesn’t quite go back far enough to show a worse 2 day drop, although those of us that were around the energy markets during those days remember it well. The energy ETF representing a basket of Canadian energy equities touched its lowest level in more than a year today.

Adding to the bearish news were tariff retaliations by China, and additional volumes added to the market by OPEC+ this week. A Reuters article even went as far as to suggest that the Saudis were looking to punish those overproducers within OPEC+ by opening the taps.


Chart courtesy of StockCharts.com

Excellent work by X user @rockcreekfreak shows just how severe the stock market losses were for various energy producers and service companies over the last 2 days.