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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