The Canadian Press - ONLINE EDITION

Canadian dollar gains as oil prices climb, amid lower U.S. supplies

  • Print

TORONTO - The Canadian dollar was higher Wednesday as the price of oil climbed amid a report of lower than expected stockpiles in the United States.

The loonie gained 0.31 of a cent to 92.02 cents US.

The July crude contract on the New York Mercantile Exchange advanced five cents to US$104.40 a barrel amid a report from the U.S. Energy Department that oil supplies fell by 2.6 million barrels in the week ended June 6, more than double the 1.2 million barrels analysts expected.

Meanwhile, the Organization for Petroleum Exporting Countries, which is meeting in Vienna, is expected to keep its output target of 30 million barrels a day unchanged.

The gain also came amid news that a group of al-Qaida inspired militants overran much of the Iraqi city of Mosul on Tuesday. Mosul is in an area that has been but is not currently a major gateway for Iraqi oil.

Also adding to upward pressure on oil prices are the faltering talks on solving Ukraine's gas payments to Russia as well as global indicators suggesting a pickup in growth in the second half of the year.

"Oil has kept our loonie from falling below the 90 cent mark," said Allan Small, a senior adviser with Holliswealth.

"If you look at the economic data right now, Canada is definitely, I don't know if you want to say slowing down, but not growing at a pace we want to see. I think our loonie could possibly fall to the 90 cent mark going forward," Small said.

Meanwhile, the World Bank has said it's planning on cutting its 2014 growth forecast to 2.8 per cent from 3.2 per cent, citing a bitter American winter and the political crisis in Ukraine. However, recent data such as solid U.S. hiring and stronger Chinese exports in May suggest prospects for growth in the second half of the year aren't all pessimistic.

Scotiabank's Camilla Sutton said the loonie and U.S. dollar aren't expected to make any major moves Wednesday.

"The USDCAD is trading in a tight range, lacking a fundamental catalyst to shift it in either direction," Sutton, chief FX strategist, managing director, Scotiabank Global Banking and Markets, wrote in a note.

"Today there is no data in North America and no Fed (Federal Reserve) or BoC (Bank of Canada) speakers, leaving USDCAD likely in a quiet range," she said, referring to the loonie and the U.S. dollar.

In other commodities, August gold bullion gained $1.10 to US$1,261.20 an ounce, while July copper declined by a penny to US$3.04 a pound.

Follow @LindaNguyenTO on Twitter.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Peguis Chief Hudson comments on toddler's death upgrade to homicide investigation

View more like this

Photo Store Gallery

  • A Yellow-bellied Sapsucker hangs out on a birch tree in St. Vital. The Yellow-bellied Sapsucker is considered a keystone species. Other species take advantage of the holes that the birds make in trees. A group of sapsuckers are collectively known as a
  • PHIL.HOSSACK@FREEPRESS.MB.CA 090728 / WINNIPEG FREE PRESS White Pelicans belly up to the sushi bar Tuesday afternoon at Lockport. One of North America's largest birds is a common sight along the Red RIver and on Lake Winnipeg. Here the fight each other for fish near the base of Red RIver's control structure, giving human fisher's downstream a run for their money.

View More Gallery Photos

Poll

Should Winnipeg control growth to deal with climate change?

View Results

Ads by Google