Oil prices slid again on Friday, January 31, a day after the World Health Organization (WHO) officially declared the coronavirus an international public health emergency. Fears have mounted as the pandemic has spread beyond China.
The virus has now claimed over 200 lives, and more countries are now recommending against travel to its host country.
Seasonal winter weakness is also playing a role in driving oil prices downward. With these two factors hammering prices and oil-connected equities, should investors look to buy the dip?
Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) was down 2.86% in early afternoon trading on January 31. Shares have dropped 7.6% month-over-month at the time of this writing. Oil has now posted the biggest January loss in nearly three decades.
Many investors are worried that the worst effects of the coronavirus are yet to come. The stock had an RSI of 28 at the time of this writing, which puts Canadian Natural Resources in technically oversold territory.
Suncor (TSX:SU)(NYSE:SU) was down 1.63% in afternoon trading on Friday. The stock has dropped 3.2% over the past week. Suncor delivered solid results for most of fiscal 2019. Investors can expect to see its fourth quarter and full-year results on February 5.
Shares of Suncor had an RSI of 29 as of early afternoon trading on January 31, which also puts the Canadian heavyweight in technically oversold territory.
