(Bloomberg) -- Canadian oil and gas stocks fell the most this year, even as US producers rallied, after Alberta’s premier warned that the incoming Trump administration is likely to put tariffs on oil and gas imports.
An index of Canadian energy producers fell 1.4%, the most since Dec. 18, while the S&P 500 Integrated Oil and Gas subindex rose 2.2%.
Smith’s comments, made during a news conference early Monday, carried extra weight because over the weekend she had visited Donald Trump’s Mar-a-Lago resort in Florida. Her province produces most of Canada’s crude oil, the bulk of which is sent to the US.
The divergence in stock prices is “100% related to tariff fears,” said Eric Nuttall, a partner and senior portfolio manager at Ninepoint Partners. Most exposed are Canadian heavy-oil producers that ship the bulk of their production into the US, he said, including MEG Energy Corp., which fell 6.2% in Toronto on Monday. Companies such as Suncor Energy Inc. that own large refineries, including some in the US, would do better, he said.
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