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Silhouette of man using chain hoist in workshop.
Silhouette of man using chain hoist in workshop.
(Pamela Moore/iStockphoto)

Oil stocks unfazed by crude price carnage

Canadian oil prices are down 25 per cent since October 18 and yet the S&P/TSX Oil Producers index is lower by only 2 per cent. This raises some obvious questions, not to mention justifiable fear that the bottom is about to drop out of domestic energy stock prices.

An in-depth look at the data, however, shows that the relationship between domestic crude prices and the stock market is complicated. Investors likely have less to worry about than it might appear.