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Canadian Dollar Hovers Above 78 cents US as Oil Drops to 6-year Low

Posted March 17, 2015

Under Economic Issues, International Trade Issues

(CBC News)

The Canadian dollar is hovering at just over 78 cents US today as oil fell to its lowest level since 2009, beginning a week that many watchers say could be crucial for both the loonie and oil.

Oil lost another dollar early Monday, with the most prominent West Texas Intermediate contract trading down $1.07 to $43.77 US a barrel. Western Canada Select, a Canadian contract, dipped below the key $30 a barrel level before closing at $30.28, a significant discount to world oil prices. The Canadian dollar, which is closely tied to the price of crude, dipped before closing at 78.28 cents US, unchanged from Friday.

After appearing to hit a floor at around $48 for the past month, WTI oil seems to have renewed its slide, as it’s become clear that producers are pumping out just as much oil as ever and keeping it in storage, waiting for prices to rebound. Click here to read more.

Related: Weak U.S. Factory Data Suggest Softer Economic Growth (Globe & Mail)