2 TSX Stocks to Buy as Oil Prices Soar

This last week, the Organization of Petroleum Exporting Countries (OPEC) announced that it would pursue a million-barrel production cut in response to rising supply that had eaten into profits. Oil prices have surged in response. That has spurred some experts to predict that West Texas Intermediate (WTI) crude could reach US$100 per barrel by the end of the year.

WTI crude sits at $80/barrel at the time of this writing, while Western Canadian Select (WCS) is trading just under $60/barrel. In this climate, investors should be on the hunt for top oil stocks on the TSX.

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) is a Calgary-based company that acquires, explores for, develops, products, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). Shares of this top energy stock have jumped 7% week-over-week as of close on April 4. The stock is now up 11% in the year-to-date period.

In fiscal 2022, this company achieved adjusted net earnings of $12.8 billion or $11.19 per diluted share – up from $7.42 billion or $6.25 per diluted share in fiscal 2021. Shares of this energy stock still possess a very favourable price-to-earnings ratio of 8.3. It offers a quarterly dividend of $0.90 per share. That represents a solid 4.5% yield.

Suncor Energy (TSX:SU)(NYSE:SU) is one of the largest integrated energy companies in Canada and around the world. Its shares are up 4% over the past week. The stock is now up 5.5% so far in 2023.

Shares of Suncor possess a very attractive P/E ratio of 6.6. Better yet, it offers a quarterly dividend of $0.52 per share, which represents a super solid 4.7% yield.