Poor performance of the index is tied to lower than expected OPEC production cuts, as well as larger than expected OPEC oil exports in June
It has been a rough couple of months for the Ubika Energy Index (UE20), as it has declined an average of 14.2% since our last report, underperforming its benchmark S&P/TSX Capped Energy index, which fell 12.6% and the WTI oil price, which declined 4.1%. The poor performance of the index is tied to lower than expected OPEC production cuts, as well as larger than expected OPEC oil exports in June. Of the 20 companies in the Ubika Energy index, only one is in the green – Corridor Resources Inc. (TSX: CDH).
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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