CAD Under Attack As Oil Tumbles After Trump Tells OPEC To Relax
Dean Popplewell | Feb 25, 2019 11:07
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.
Brent crude oil 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.
U.S. crude 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. USD/CAD 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.
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.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.