Calgary, May 25, 2026, 10:01 MDT
Canadian Natural Resources shares lost around 3% in Toronto on Monday, lagging the record run in Canada’s main stock index. Oil prices fell as traders eyed possible relief from U.S.-Iran talks. The stock hovered near C$65.12, off 3.16%. The S&P/TSX composite climbed about 1%.
Canadian Natural has turned into a direct way to play oil-sands cash as the country’s biggest oil and gas producer, which makes the move important for investors. West Texas Intermediate crude, the U.S. benchmark, dropped around 5% to $91.75 a barrel. Brent crude lost 4.8% to $98.57, according to Reuters.
Toronto stocks traded as usual with the market open. TMX’s calendar puts U.S. Memorial Day on May 25, which comes with special settlement rules for U.S.-dollar securities. Its Canadian 2026 holiday list has Victoria Day for May 18, with the next Canadian market holiday set for July 1.
S&P/TSX set a record high, Reuters reported, as miners gained and inflation fears eased. Energy lagged, falling 2.1% to become the only major TSX sector down on the day. Brian Madden, chief investment officer at First Avenue Investment Counsel, said “a non-zero chance” the conflict ends was enough to boost stocks and send oil lower. Reuters
Suncor Energy dropped 2.12% to C$91.05 on the TSX, with Cenovus Energy also down 2.35% to C$40.51. Both stocks tracked moves in crude. Market data via Trading Economics.
Canadian Natural shares fell less than three weeks after reporting a solid first quarter. The company turned in adjusted net earnings of C$2.4 billion. Adjusted funds flow was C$4.4 billion. Production came in at about 1.64 million BOE/d, with BOE/d converting oil and gas output into one oil-based unit.
Shareholder returns are still the main driver for the stock. Canadian Natural said it gave back about C$1.5 billion to shareholders in the first quarter by way of dividends and buybacks, meaning it bought back its own shares. CFO Victor Darel said returns would go to “100% of free cash flow” after net debt falls to C$13 billion. Free cash flow is what’s left after capital spending. TMX Newsfile
Canadian Natural’s management is linking oil-sands expansion to new pipeline projects. Speaking to analysts this month, President Scott Stauth said the company “needed a new West Coast pipeline to grow the oil sands in a significant way.” Reuters said the 150,000 bpd Jackpine expansion is still on pause as the company waits for more visibility on pipeline capacity. Reuters
Still, the downside is clear. If talks between the U.S. and Iran collapse, crude prices could bounce and help producers. If a deal sticks, and more oil passes through the Strait of Hormuz, crude’s risk premium might fall further. Kyle Rodda, senior financial market analyst at Capital.com, said Iran’s nuclear program and grip on the Strait are “potential obstacles.” Reuters
CNQ shares aren’t really trading on their dividend history right now, but on whatever crude moves next. That leaves the stock open to swings: if oil prices drop, that’s good news for inflation and the TSX, but it takes the shine off Canadian producers that got a lift from higher war premiums.
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