Oil continues to steadily move up to multi-year highs. Now, the price is supported by an official report from the US Department of Energy. According to official data, Crude Oil inventories declined by 4 million 948 thousand barrels in a week, which surpassed the forecasts of the analysts. Moreover, the volume of oil production also decreased by 290 thousand barrels a day. This data put an upward pressure on Light Sweet Oil. WTI is trading at $63.50 a barrel. However, investors still worry about increasing oil production in the US. Meanwhile, the oil market is supported by the successful implementation of the OPEC deal, signed by major world oil producers. Therefore, Brent confidently maintains a bullish trend. Today, the price hit the zone above $69 a barrel. Experts forecast the start of a correction movement in the market in the near future, as Donald Trump is to make the final decision regarding the easing of economic sanctions against Iran.
The US President is likely to reach a decision tomorrow. Meanwhile, oil is growing and helping commodity currencies to strengthen. Oddly enough, crude does not support the Canadian dollar. The USD/CAD pair is trading around 1.2580 amid political factors. Market participants are again concerned about a possible withdrawal of the US from the North American Free Trade Agreement. This economic uncertainty reduces the probability of an increase of the key interest rate by the Bank of Canada next week. Today, Canada is to release the new Housing Price Index. Analysts expect the index to grow and support the Canadian national currency.
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