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Oil Falls Below $50 for First Time Since December 2016

Published March 9, 2017
  • WTI Crude fell below $50 for the first time since the start of December 2016 as the market reacts to yesterday’s data release on US oil inventories; USD/CAD reached new highs for 2017 as the loonie continues to suffer from falling oil prices
  • The US Energy Information Administration showed US crude supplies surged by 8.2 million barrels last week to an all-time high of 528.4 million barrels in total; oil prices have fallen nearly 7% over the past three days
  • US unemployment claims rose by 20,000 claims in the week ended on March 4th; investors await crucial data tomorrow on US non-farm employment change, US unemployment rates as well as Canadian employment change and unemployment data
  • OPEC and non-OPEC members will meet on March 26 to review compliance with the original output agreement; market will look for more news on whether participants will seek to extend the deal beyond its original June 30 deadline
  • The European Central Bank left interest rates unchanged as expected; investors will look to ECB President Mario Draghi’s press conference today at 8:30 AM EST to see if the bank will offer a hawkish tone and hints at tightening monetary policy
  • Draghi is likely to acknowledge that euro zone inflation numbers are near the bank’s target rate; however, comments may indicate that rising inflation is due to higher energy prices
  • Near-term political risk from French and Dutch elections will also be a concern for the bank