Impact of Strait of Hormuz Reopening on Oil Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2026
0mins
Source: NASDAQ.COM
- Downward Price Pressure: The reopening of the Strait of Hormuz is expected to flood the market with oil supplies, likely pushing prices down to $60 per barrel, negatively impacting oil producers while leaving pipeline companies like Enbridge and Plains All American Pipeline unaffected.
- Supply Glut Forecast: The International Energy Agency anticipates that by 2027, global oil supplies will increase by 8 million barrels per day, while demand will only rise by 2 million barrels per day, resulting in a supply surplus exceeding 5 million barrels per day, further pressuring oil prices downward.
- Stable Cash Flow for Enbridge: Enbridge operates over 18,000 miles of pipeline systems, with 99% of its earnings derived from fixed-fee contracts, ensuring predictable cash flow, achieving its financial guidance for 20 consecutive years, and increasing dividends for 31 years.
- Growth Potential for Plains All American: Plains All American Pipeline owns over 20,000 miles of pipelines, with 85% of its earnings from fee-based contracts, and expects rising global oil demand to drive mid-single-digit earnings growth, providing a nearly 8% high-yield distribution suitable for investment in any oil price environment.
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Analyst Views on ENB
Wall Street analysts forecast ENB stock price to rise
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 53.470
Low
45.79
Averages
53.54
High
69.00
Current: 53.470
Low
45.79
Averages
53.54
High
69.00
About ENB
Enbridge Inc. is an energy transportation and distribution company. The Company's segments include Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power Generation. Liquids Pipelines consists of pipelines and terminals in Canada and United States that transport and export various grades of crude oil and other liquid hydrocarbons, including the Mainline System, Regional Oil Sands System, Gulf Coast and Mid-Continent, and Other. Gas Transmission consists of its investments in natural gas pipelines and gathering and processing facilities in Canada and United States, including United States Gas Transmission, Canadian Gas Transmission, United States Midstream, and Other. Gas Distribution and Storage consists of its rate-regulated natural gas utility operations in Canada and United States. Renewable Power Generation consists primarily of investments in wind and solar assets, as well as equity interests in geothermal power and power transmission assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Relations Support: After the call, Enbridge's media and investor relations teams will be available for additional inquiries, enhancing communication and transparency with stakeholders.
- Webcast Replay: A replay and transcript of the webcast will be made available on Enbridge's website shortly after the event, allowing investors who missed the live call to access critical information and insights.
See More
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- Conference Format: The call will feature prepared remarks from the executive team followed by a Q&A session for analysts and investors, aimed at enhancing engagement and addressing concerns.
- Media Support: After the call, Enbridge's media and investor relations teams will be available for additional inquiries, ensuring all participants receive the necessary information and enhancing transparency.
- Webcast Replay: A replay and transcript of the conference will be posted on Enbridge's website shortly after the event, allowing investors and analysts who could not attend live to review the information, thereby improving accessibility to key updates.
See More
