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A Canadian Natural Resources pump jack pumps oil out of the ground near Dorothy, Alberta, June 30, 2009.
A Canadian Natural Resources pump jack pumps oil out of the ground near Dorothy, Alberta, June 30, 2009.
(Todd Korol/Reuters)

SCOTT BARLOW

Domestic oil stocks attractive – and expensive

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Whether you believe stronger crude prices are the result of political turmoil in Egypt or the more exotic explanation of real interest rates, the one sure thing is that rising oil prices are dramatically improving. That will sweeten the outlook for Canadian oil producers, as analysts upgrade future earnings expectations. But, as promising as this sounds, forward-looking valuations for domestic oil producers tell a far more cautionary tale.