Lower Oil Prices in Q4 to Impact Financial Results for Canadian Energy Sector

Lower oil prices in the fourth quarter caused by ongoing recession fears and higher-than-expected non-OPEC supply are set to weigh on financial results. Canadian oil and gas companies are expected to report weaker quarter-over-quarter results.

Lower oil prices in the fourth quarter caused by ongoing recession fears and higher-than-expected non-OPEC supply are set to weigh on financial results. (AP Photo/Gregory Bull, File)) is set to report financial results next Friday, a first look for investors at how the biggest players in Canada’s energy sector have fared against falling crude prices.) oil averaged US$78.52 per barrel in the fourth quarter, down about four per cent from the previous three months.

While natural gas (“We expect to see generally weaker quarter-over-quarter results for the Canadian oil and gas group due to generally softer commodity prices,” BMO Capital Markets analyst Randy Ollenberger wrote in a recent research note. He says ongoing recession fears and higher-than-expected non-OPEC supply weakened oil prices during the quarter. Ollenberger estimates Canadian oil and gas companies will report $8.2 billion free cash flow for the fourth quarter, down from $11.3 billion in the prior period. RBC Capital Markets is expecting $6.5 billion in free cash flow in Q

Source: YahooFinanceCA