EncoreFX’s daily market updates are written by our experienced and professional dealing team.
Oil Prices Move Lower Ahead of OPEC Meeting; Loonie Remains in Low 1.3300’s
Published June 21, 2018
Oil ministers from OPEC nations, Russia, and other oil exporting nations commenced their meeting to review their current production agreement in Vienna earlier this morning; officials will release a final verdict on Friday on whether the group will alter the agreement to allow for increased production.
The agreement to cut production has ultimately been successful in cutting oil output by 1.8 million barrels per day since January 17; with this, oil prices have recently moved to multi-year highs, providing an impetus for Russia and Saudi Arabia to rebalance the global oil supply by raising production.
Oil prices have dropped this morning in anticipation for tomorrow’s potential production hike announcement.
USD/CAD remains in the low 1.3300s, as the correlation between oil and CAD is currently weaker than normal due to the loonie’s acute reaction to ongoing trade tensions with the US.
Growth in Canadian wholesale sales grew 0.1 percent versus expectations of 0.4 percent. Investors will look for a positive number in tomorrow’s CPI data (most used indicator of Canadian inflation) release for a better prediction on the upcoming Bank of Canada interest rate hike on July 11.