Producers of oil and gas weighed on Canada’s main stock index as crude oil prices hit a seven month low with increasing concerns on market oversupply.
The Toronto stock exchange’s composite index was down 116.44 points to 15,149.60, and as a result the energy sector lost 2.23 per cent. Amongst all the other energy sectors, Cenevus energy was affected the most, with a drop in its shares from 84 cents to $9.44.
Prices of oil took a sharp decline since mid-November of last year, after the crude oil contract shutdown 92 cents at $43.51 US per barrel.
The energy stock has been bouncing about between $40 and $55 per barrel for majority of last year, which is a drop from the $110 recorded in 2013.
Members of the company OPEC joined heads to cut productions hoping to limit supplies, but the increased output in countries like the United States which is a non-OPEC country, has investors thinking how impactful they could be in influencing prices.
According to Sadiq Adatia, the United States sale gas is rather on a high unlike the energy stocks in Canada.
News from other markets show, an increase of 63 cents to $15.42 was observed in shares of Home Capital Group. A mortgage lender was willing to sell $1.2 billion of its assets to KingSett Capital and a private firm in trying to stabilize it-self is focusing on real estates.
Currency wise, the Canadian dollar traded 0.27 of one cent which was lower than the average price of 75.37 cents US.