* Canadian dollar at C$1.2999, or 76.93 U.S. cents
* Price of U.S. oil falls 0.2 percent
* Bond prices lower across the yield curve
TORONTO, June 12 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday, pressured by an uncertain outlook for the country's trade with the United States and lower oil prices.
U.S. President Donald Trump insisted he had a good relationship with Justin Trudeau, just days after blowing up a G7 summit the Canadian prime minister had hosted. But Trump took another dig at Trudeau, saying the United States had a big trade deficit with Canada and that "a little balance" was needed. U.S. president's comments come amid slow-moving talks between Canada, the United States and Mexico to modernize the North American Free Trade Agreement. Canada sends about 75 percent of its exports to the United States and its economy could be hurt if NAFTA were scrapped.
The price of oil, one of Canada's major exports, dipped even as comments from the Iraqi oil minister cast doubt on whether the Organization of the Petroleum Exporting Countries would decide to boost output at its upcoming meeting. crude CLc1 prices were down 0.2 percent at $65.98 a barrel.
At 9:14 a.m. EDT (1314 GMT), the Canadian dollar CAD=D4 was trading 0.2 percent lower at C$1.2999 to the greenback, or 76.93 U.S. cents. The currency traded in a range of C$1.2977 to C$1.3023.
Last week, the loonie touched its weakest in 2-1/2 months at C$1.3068.
Canadian government bond prices were slightly lower across the yield curve in sympathy with U.S. Treasuries after data for May showed the biggest advance in U.S. consumer prices in more than six years. two-year CA2YT=RR fell 1 Canadian cent to yield 1.91 percent and the 10-year CA10YT=RR declined 8 Canadian cents to yield 2.315 percent.