CAD Under Attack As Oil Tumbles After Trump Tells OPEC To Relax


Oil has fallen by more than 2% so far today, reversing earlier gains after U.S. President Donald Trump told OPEC producers to “relax” as prices were too high.

futures are down $1.43 at $65.69 a barrel, having earlier risen to a 2019 high of $67.47. West Texas Intermediate (WTI) crude futures is down $1.38 at $55.88 a barrel.

“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!” Trump tweeted.

WTI for Feb. 24-26, 2019

WTI for Feb. 24-26, 2019

oil production has hit a record 12 million bpd, an increase of more than 2 million bpd since early 2018. Exports hit a record 3.6 million bpd this month. These record numbers are forcing other producers, especially in the Middle East, to start offering their crude at discounts.

Note: OPEC+ led cuts as well as U.S. sanctions against Iran’s and Venezuela’s oil exports helped push oil prices to new 2019 highs last week.

Trump’s tweeted comments this morning follows a rally in crude prices in 2019 supported by a tighter supply outlook although they are still significantly lower than the peak of more than $85 a barrel hit last October.

Loonie under attack

The commodity sensitive CAD has come under pressure ever since Trump tweeted his concerns at 06:58 a.m. ET. has rallied form an overnight dollar low of C$1.3115 to trade atop of its intraday high of C$1.3155 and still looking to grind higher.

USD/CAD for Feb. 24-26, 2019.

USD/CAD for Feb. 24-26, 2019.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link



Leave a Reply

error: Content is protected !!