Canadian oil stocks climb as industry absorbs news of Trudeau resignation

A rainbow appears to come down on pumpjacks drawing out oil and gas from wells near Calgary, Alta., Monday, Sept. 18, 2023. THE CANADIAN PRESS/Jeff McIntosh

Canadian oil and gas stocks climbed Monday as the country's energy sector absorbed the news of Prime Minister Justin Trudeau's resignation.

As of mid-afternoon, the energy sector led all others on the TSX in terms of gains, with the S&P/TSX capped energy index up nearly two per cent.

Some energy investors and traders cheered Trudeau's announcement on social media.

Canada's oil and gas sector has had a rocky relationship with Trudeau's government over the past decade.

The federal government under his leadership made a major investment in the sector through its purchase of the Trans Mountain pipeline in 2018, but it also introduced a number of policies that were seen by many as hostile to oil and gas development.

The Trudeau government's proposed oil and gas emissions cap, which has not yet been finalized, faced staunch opposition from both the industry as well as the oil-producing provinces of Alberta and Saskatchewan.

This report by The Canadian Press was first published Jan. 6, 2025.