Biden admin officials looking at ways to boost oil imports from Canada

Biden administration officials are looking at ways to boost oil imports from Canada, the Wall Street Journal reported on Tuesday. The White House still opposes the Keystone pipeline and other options include shipping more oil by rail, or expanding pipeline capacity along existing routes. 

Market Reaction

The loonie saw immediate strength on the news, which would of course be bullish for CAD via improved terms of trade with the US. USD/CAD fell to its lowest level since 10 November and currently trades just above 1.2400. A break below this key psychological figure looks on the cards, which would open the door to a test of sub-1.2300 Q4 2021 lows.