Much like Anthony Scaramucci’s time in the White House, crude oil’s stay above $50 a barrel was rather short-lived. A Bloomberg survey noted yesterday that Libyan crude oil output continues to rise and now stands at its highest level since June 2013. It should be noted that Libya and Nigeria were exempted from the most recent agreement signed by members of the Organization of Petroleum Exporting Countries (OPEC) to allow them to make up for lost production due to domestic conflicts that had adversely impacted those two countries in recent years. WTI crude oil prices dropped on the news.
While we await Friday’s job data, the USD/CAD pair is trading in a channel with little direction and the drop of 2.7% in crude oil prices was enough to bring us back into the top end of the range from last week. In the United States, economic data released yesterday were lacklustre. The Core PCE Inflation Index was in line with expectations at 0.1% for June. Today, the ADP Employment Change Index for private sector jobs will be released at 8:15 a.m., followed by U.S. Crude Oil Inventories at 10:30.
Alexis Masson
Range of the day : 1.2510 – 1.2600