The dip in Canadian Dollar today is apparently due to the fall in oil prices. At the time of writing, WTI crude oil is down -0.5 at 64.25.
The selloff in oil comes after Bloomberg reported that the US is trying to force OPEC to raise output by 1m barrels a day. While the US government has regularly encouraged OPEC to rise production, it’s unusual to put up a number. There is no details on why there was such a request, what ground the US was on, what the US was going to exchange for the production hike, and why 1m barrels but not other numbers, who were in touch with OPEC and raised the request, through what mechanism was the request made. Based on such non-existing transparency, it seems like OPEC as a cartel is no different from OPEC + US as another cartel.
It’s also reported that the request of the US was debated at a meeting of some Arab oil ministers over the weekend in Kuwait city. And a statement came after that pledging to “ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines in some parts of the world.”
