Oil resumed growth after the publication of the report from the American Petroleum Institute. According to the API data, the US oil stockpiles decreased by 5 million 121 thousand barrels in a week. Now, market participants are waiting for government numbers from the Department of Energy that can confirm optimistic forecasts. As a result, Light Sweet Crude Oil rebounded from the level of $63.40 a barrel. Now, WTI is trading a little below $64. Meanwhile, Brent Crude Oil also left the Wednesday low of $68.60 a barrel. Brent developed the bullish trend after the news about possible interruptions of oil supply from Nigeria. Earlier, an armed group threatened to attack offshore oil facilities in the country.
Such situations always trigger the bullish trend on the oil market and support not only the oil prices but also the commodity currency. However, today the situation is different. For example, the USD/RUB pair continues to trade at highs, close to the level of 56.70 amid strengthening of the US currency. Now, it is time to pay attention to the Canadian currency. The USD/CAD pair is trading around 1.2440. Currency strategists note that, if not for oil growth, the Canadian dollar could sink against the US currency.
The loonie is weakening amid the published report of the Bank of Canada on its monetary policy. The bank decided to rise the key interest rate to 1.25%, but the accompanying statement discouraged market participants. Officials say that they do not plan to change the monetary policy in the near future. Therefore, analysts expect the Canadian dollar to return under the influence of the oil market. If the report from the US Department of Energy will encourage investors, the USD/CAD pair might start a downward correction.
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