Cut your oil risk with high-quality producers

Article Excerpt

Oil prices have moved up about 8% in the past two months to roughly $50 U.S. a barrel. The gain is largely due to OPEC’s production cuts. U.S. output of shale oil has also slowed as producers focus on their most-promising operations. We continue to recommend all investors hang on to their high-quality oil producers such as the four we analyze below. They provide a vital hedge against inflation. However, you should continue to limit your Resource sector holdings to no more than 20% of your total portfolio. SUNCOR ENERGY INC. $42 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; s/o: 1.7 billion; Market cap: $71.4 billion; Price-to-sales ratio: 2.3; Divd. yield: 3.0%; TSINetwork Rating: Average; www.suncor. com) is Canada’s largest integrated oil company, with its major projects in the Alberta oil sands. The company also owns four refineries (three in Canada and one in Colorado) along with 1,500 Petro-Canada gas stations. In the quarter ended June 30, 2017, Suncor’s average daily…