Canadian dollar above 76 cents US as oil surges to 1½-year high
The Canadian dollar stayed firm above 76 cents US on Monday after oil prices touched an 18-month high.
The impetus for the rise in crude was an agreement between the Organization of the Petroleum Exporting Countries and key non-OPEC crude producers to cut output.
At a weekend meeting, 11 non-OPEC producers agreed to cut 558,000 barrels a day of crude output in the six months beginning Jan. 1. As well, Saudi Arabia's oil minister hinted that it was considering further production cuts, on top of the 486,000 barrels a day to which it has already committed.
Last month, OPEC countries agreed to cut 1.2 million barrels a day from their output, which has left the world flooded in oil and depressed oil prices.
In indications that OPEC members are serious about reducing production, Iraq said Monday it was in discussions with foreign companies operating its giant southern fields to implement some cuts during scheduled maintenance.
Brent futures, the main international contract, soared more than five per cent to top $57 US a barrel in European trading for the first time since July 2015. But the rally was short-lived and it slipped back in North American trading to $55.53 a barrel. That's still a two per cent gain from Friday.
West Texas Intermediate, the benchmark North American contract, closed at $52.83 a barrel, up $1.33 from Friday and shy of the $54 it reached overnight.
Those are the highest prices in 18 months, and lit a fire under the Canadian dollar and energy stocks.
Canadian dollar above 76 cents US as oil surges to 1½-year high - Business - CBC News
The Canadian dollar stayed firm above 76 cents US on Monday after oil prices touched an 18-month high.
The impetus for the rise in crude was an agreement between the Organization of the Petroleum Exporting Countries and key non-OPEC crude producers to cut output.
At a weekend meeting, 11 non-OPEC producers agreed to cut 558,000 barrels a day of crude output in the six months beginning Jan. 1. As well, Saudi Arabia's oil minister hinted that it was considering further production cuts, on top of the 486,000 barrels a day to which it has already committed.
Last month, OPEC countries agreed to cut 1.2 million barrels a day from their output, which has left the world flooded in oil and depressed oil prices.
In indications that OPEC members are serious about reducing production, Iraq said Monday it was in discussions with foreign companies operating its giant southern fields to implement some cuts during scheduled maintenance.
Brent futures, the main international contract, soared more than five per cent to top $57 US a barrel in European trading for the first time since July 2015. But the rally was short-lived and it slipped back in North American trading to $55.53 a barrel. That's still a two per cent gain from Friday.
West Texas Intermediate, the benchmark North American contract, closed at $52.83 a barrel, up $1.33 from Friday and shy of the $54 it reached overnight.
Those are the highest prices in 18 months, and lit a fire under the Canadian dollar and energy stocks.
Canadian dollar above 76 cents US as oil surges to 1½-year high - Business - CBC News