Monday, January 26th2.6°C
24779
24105

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

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.

The Canadian Press


Read more Business News

24910


Recent Trending




Today's Market
S&P TSX14779.35+15.369
S&P CDNX678.18-0.79
DJIA17672.60-141.38
Nasdaq4757.879+7.481
S&P 5002051.82-11.33
CDN Dollar0.80400.00
Gold1290.60-2.00
Oil46.35-2.34
Lumber311.50+6.50
Natural Gas2.924-0.062

 
Okanagan Companies
Pacific Safety0.115-0.005
Knighthawk0.010.00
QHR Technologies Inc1.38+0.06
Cantex0.035+0.005
Anavex Life Sciences0.1810.00
Metalex Ventures0.040.00
Russel Metals24.48+0.32
Copper Mountain Mining1.10-0.02
Colorado Resources0.155+0.005
ReliaBrand Inc0.006+0.001
Sunrise Resources Ltd0.055+0.03
Mission Ready Services0.22+0.02

 



24813

FEATURED Property
18999607 - 2025 Shannon Lake Road
3 bedrooms 2 baths
$209,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...


Ailing Parents: Tax Issues

If your parent has become ill, there can be several tax issues that come into play depending on the nature of their illness, their age and the role that family members are playing. For example, if you...


What do I pay ICBC for anyway?

If you have had ongoing dealings with ICBC as a result of a car accident than you have likely had the pleasure of dealing with at least two sides of ICBC. Initially the relationship starts off pleasan...

_





24709


Member of BC Press Council


24222