Venezuela Faces Major Challenges in Resuming Production; Buying Opportunities Emerge in Canadian Midstream Energy Stocks Amid the Downturn
Canadian midstream energy stocks have not been spared from the widespread price declines triggered by the conflict in Venezuela, but Maurice Choy of RBC noted that if the downturn continues, it could present a buying opportunity. The analyst added that this would be particularly true if investors share the firm’s view that restoring Venezuela’s output to 3 million barrels per day through $10 billion in annual investment—under stable security conditions—is an extremely difficult challenge. Choy stated that in the coming weeks and months, midstream companies are likely to signal that their growth outlook remains largely intact while confirming their 2026 outlook, but will adopt a “wait-and-see” approach toward longer-term projects based on signals from upstream clients.
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