WTI oil traded in a range between $43 and $46 USD/barrel over the past week. On the whole, crude oil priced in USD ended the week down 3.30%. The gain in value by the USD over the week has certainly helped to place downward pressure on crude oil prices.
Among the items making news on markets:
- Crude oil prices are starting the week down, as Iran has ramped up production faster than expected. The country, which wants to be exempted from an OPEC output agreement, informed markets that it increased its production by 210,000 barrels/day up to 3.92 million barrels/day in October.
- OPEC member nations will meet on November 30 in Vienna, where they will attempt to reach an agreement to reduce output from 34 million barrels/day to 32.5 -33 million barrels/day. Many analysts estimate that WTI prices could reach $60 USD/a barrel if an agreement is reached.
- Further to the U.S. elections last Tuesday, the loonie recorded its third straight decline against the greenback. President-Elect Trump’s comments regarding NAFTA have led to a wave of uncertainty for Canadian international trade. It is important to keep in mind that a declining Canadian dollar will increase fuel prices in CAD/litre.
As energy prices are falling, we encourage our clients looking to put in place hedging for their fuel expenses to call us to place orders in the market..
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