The spot price of oil briefly passed the $60 mark on December 26 after an explosion at Libya’s largest oil terminal. This was the first time oil breached this key level since June 2015. A November meeting between the Organization of Petroleum Exporting Countries (OPEC) saw the nations extend an oil production cut into the end of 2018.
Several Canadian energy stocks could benefit from this bullish atmosphere for oil. The oil market remains tight heading into the New Year, and many top Canadian producers boast high dividend yields and possible discounts on the stock price.
Enbridge Inc. (TSX:ENB)(NYSE:ENB) was down 0.31% at the bottom of the noon hour on December 27. The stock has dropped 13.3% in 2017. The stock received a boost after the company announced it would sell off $3 billion in assets in 2018, and committed to hiking its dividend by 10% into 2020. In its most recent third quarter report, Enbridge posted a quarterly dividend of $0.67 per share with a 5.4% dividend yield.
TransCanada Corp. (TSX:TRP)(NYSE:TRP) stock was down 0.73% at the bottom of the noon hour on December 27. Shares have climbed 1.1% in 2017, boosted by news early in the year that the Keystone XL Pipeline would go forward. In the third quarter TransCanada posted a $612 million profit and offered a dividend of $0.62 per share representing a 4% dividend yield.
Investors should be on the lookout for discounts on energy stocks, especially those with high yields, as oil enters 2018 with winds at its back.