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.

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