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Oil at seven year low, Canadian loonie weakens
Oil prices fell to the lowest level since 2009 amid signs the global glut in supply probably won’t abate any time soon. Crude oil has come under pressure especially after the OPEC meeting last week did not result in its members changing the ceiling on oil production.
Meanwhile, Saudi Arabia, one of the world’s largest producers, has insisted upon continuing to pump at current levels, looking to hold its market-share amid the sharp rise in US production.
WTI oil prices (West Texas Intermediate) plunged 5.8 per cent on Monday to $37.65, its biggest fall since September and settled at the lowest price in almost seven years. Brent crude, the international benchmark, fell by 5.3 per cent on the day.
The Canadian dollar was impacted by the drop in oil prices as Canada is a large producer of oil, currently ranked 5th in the world. As a result, the loonie lost 1.2 per cent to 1.3513 per US dollar (or US$0.74), the lowest since June 2004. The fall extends this year’s slide to more than 14 per cent.
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