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by Stockwatch Business Reporter

West Texas Intermediate crude for January delivery lost $2.30 to $68.94 on the New York Merc, while Brent for January lost $2.16 to $73.01 (all figures in this para U.S.). Western Canadian Select traded at a discount of $9.60 to WTI, up from a discount of $12.60. Natural gas for December added 24 cents to $3.36. The TSX energy index lost 5.15 points to close at 284.71.

Oil sands producer Cenovus Energy Inc. (CVE) lost 44 cents to $22.18 on 8.63 million shares, after announcing that it will redeem its 10 million outstanding Series 3 preferred shares at a redemption price of $25. The redemption date is Dec. 31. This will also be the payment date of the final dividend on these shares, recently declared to be 29.306 cents -- in line with the entitlement to an annual yield of 4.690 per cent -- and payable to shareholders of record on Dec. 13.

The Series 3 shares are one of several series of preferred shares that Cenovus inherited from Husky Energy after the two of them completed a multibillion-dollar merger in 2021. Under the terms of issuance, on Dec. 31, 2024, the Series 3 shares can be redeemed by Cenovus, or they can be converted into a fresh series of preferred shares, or they can remain outstanding but with a new dividend rate. The terms also mandate that this choice comes around only once every five years. Cenovus has chosen redemption, which investors seem to have expected, given how closely the preferred shares have been trading to their redemption price.

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