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As Oil Prices Rally, is Enbridge a Good Pipeline Stock to Invest in? By StockNews

by Mike Robinson

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© Reuters. Enbridge: A Good Stock for Pipeline Investments?

The global shortage and rising demand have fueled oil prices to their highs for many years. We believe that pipeline operators as well as oil-producing businesses should reap big rewards, given the fact that oil prices will continue to rise. However, considering Enbridge (NYSE:)’s weak debt profile, is the stock a good choice now? Continue reading. Canada-based Enbridge Inc. The energy infrastructure company (ENB), is a company that owns business platforms which include liquids, pipelines and regulated natural gas distribution utilities. It also has renewable power generation. Stock has been able to deliver solid returns for the past year, and year-to date. The current trading price is above its 50-day & 200-day moving medians.

Oil prices are at multi-year highs thanks to the supercharged rally in oil prices. U.S. crude oil rose above $80 per barrel for the first-time since late 2014 marking a 125% rise since last October. Last week, OPEC, its partners, and the United States announced they were sticking to their earlier agreement to increase production by 400,000 barrels per hour in November. This may not be sufficient to satisfy current demand.

Global supply constraints are expected to drive oil prices higher. Analysts predict that this trend will continue into winter and oil prices may reach $100 per barrel. ENB is a key energy infrastructure company and should see a rise in oil prices.

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