Why Enbridge Stock Tumbled by More Than 23% in the First Half of 2020
Shares of Enbridge (NYSE: ENB) slumped 23.5% during the first half of 2020, according to data provided by S&P Global Market Intelligence. The main issue weighing on the Canadian energy infrastructure company was the sell-off in the oil market.
Crude oil prices cratered earlier this year. At that point, the U.S. oil price benchmark crashed into negative territory. Despite an epic rebound from that bottom, oil fell more than 30% during the first half of 2020.
While that sell-off had a dramatic impact on companies that produce oil, it hasn't had much effect on Enbridge. The company was one of the few in the energy sector to reaffirm its full-year earnings outlook. That's because its low-risk business model minimizes its exposure to fluctuations in commodity prices and volumes. Meanwhile, the downturn's limited impact should be more than offset by positives like cost reductions, lower interest rates, and a stronger U.S. dollar.
Source Fool.com
