Oil has fallen by more than 2% so far today, reversing earlier gains after U.S. President Donald Trump told OPEC producers to “relax” as prices were too high.
Brent crude oil futures are down $1.43 at $65.69 a barrel, having earlier risen to a 2019 high of $67.47. West Texas Intermediate (WTI) crude futures is down $1.38 at $55.88 a barrel.
“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!” Trump tweeted.
U.S. crude oil production has hit a record 12 million bpd, an increase of more than 2 million bpd since early 2018. Exports hit a record 3.6 million bpd this month. These record numbers are forcing other producers, especially in the Middle East, to start offering their crude at discounts.
Note: OPEC+ led cuts as well as U.S. sanctions against Iran’s and Venezuela’s oil exports helped push oil prices to new 2019 highs last week.
Trump’s tweeted comments this morning follows a rally in crude prices in 2019 supported by a tighter supply outlook although they are still significantly lower than the peak of more than $85 a barrel hit last October.
Loonie under attack
The commodity sensitive CAD has come under pressure ever since Trump tweeted his concerns at 06:58 a.m. ET. USD/CAD has rallied form an overnight dollar low of C$1.3115 to trade atop of its intraday high of C$1.3155 and still looking to grind higher.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.