26 Nov 2013
Falling crude prices weigh on Loonie
FXstreet.com (London) - The Canadian dollar tested four-month lows today on falling crude prices.
Crude oil, Canada’s biggest export, declined yesterday and today following the successful signing of an accord with Iran in Geneva. The agreement will see Iran freeze or roll back current uranium enrichment programmes as a signal of its intent not to enrich to weapons grade. The world’s fourth largest oil producer will also allow UN weapons inspectors greater access in return for around USD7bn in relieved sanctions.
WTI crude contracts for January delivery dropped 0.18 percent to USD93.92/barrell today after falling 0.8 percent yesterday.
Last week saw the first weekly rise in WTI prices following a six-week run of declines – the longest in 15 years. Prices declined on expanding US stockpiles and surging production. It is expected that data released tomorrow by the International Energy Agency will show that crude inventories rose 750,000 barrels last week.
The drop in crude prices comes alongside a broader Canadian slowdown, with indications that the Bank of Canada Governor Stephen Poloz may move to cut rates. Annual inflation in October dropped below the Bank of Canada’s target range, falling to a five-month low of 0.7 per cent, down from 1.1 per cent in September.
USD/CAD is up 0.20 percent today to CAD1.0557.
Crude oil, Canada’s biggest export, declined yesterday and today following the successful signing of an accord with Iran in Geneva. The agreement will see Iran freeze or roll back current uranium enrichment programmes as a signal of its intent not to enrich to weapons grade. The world’s fourth largest oil producer will also allow UN weapons inspectors greater access in return for around USD7bn in relieved sanctions.
WTI crude contracts for January delivery dropped 0.18 percent to USD93.92/barrell today after falling 0.8 percent yesterday.
Last week saw the first weekly rise in WTI prices following a six-week run of declines – the longest in 15 years. Prices declined on expanding US stockpiles and surging production. It is expected that data released tomorrow by the International Energy Agency will show that crude inventories rose 750,000 barrels last week.
The drop in crude prices comes alongside a broader Canadian slowdown, with indications that the Bank of Canada Governor Stephen Poloz may move to cut rates. Annual inflation in October dropped below the Bank of Canada’s target range, falling to a five-month low of 0.7 per cent, down from 1.1 per cent in September.
USD/CAD is up 0.20 percent today to CAD1.0557.