Canadian Energy Stocks Face Downturn Amid Global Market Pressures

Canadian oil and gas stocks have experienced significant declines in 2025 due to weak global demand, increased non-OPEC supply, and ongoing trade tensions, though some analysts suggest that large, financially stable firms like Canadian Natural Resources (CNQ) may be undervalued and well-positioned to weather prolonged market weakness. CNQ has maintained strong operations with low breakeven prices and robust cash flows, supporting 25 consecutive years of dividend growth and a nearly 6% forward yield, while planning significant investments to boost production in 2025. Despite industry headwinds and a major acquisition that increased debt, CNQ’s long-term prospects remain attractive for income-seeking and contrarian investors. In the broader TSX market, companies such as Dollarama and Waste Connections have defied the downturn, delivering strong returns and demonstrating resilience and growth through strategic expansion and operational efficiency.