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Canadian Crude Stares into the Abyss | Loonie Touches Fresh Lows Against Greenback
Published November 21, 2018
Canadian crude has been in a spiral since May. Prices have plummeted by more than 60% as new oil sands production has overpowered pipeline capacities. This has come at a time when US refineries processing this oil have shut down for maintenance. The Canadian oil industry now faces the worst pricing atmosphere in its history.
The loonie has declined to a five month low against the greenback, as BOC Deputy Governor Wilkins issued comments that were viewed as increasingly dovish. This, coupled with a steep decline in crude and strengthening US dollar, led to the weakest levels for the pair since June, hitting 1.3318.
The US standoff with China over trade continues to intensify ahead of next week’s meeting between President Trump and President Xi Jinping at the G-20. US trade representative Lighthizer has released documents accusing Beijing of sustained operation of intellectual property theft.
Today is durable goods orders day in the US with the report forecasting to rise 0.4% on the month. This will be followed by the existing home sales report which is forecast to have a 5.20 million increase