Canadian Dollar and Business Outlook: Higher crude prices nudge up loonie

Looming recession holds back gains

By MarketsFarm

WINNIPEG, April 3 (MarketsFarm) – The Canadian dollar was higher Friday morning, due to developments in the Saudi Arabia/Russia crude oil price war. However, the strong likelihood of a global economic recession tempered further advances for the loonie.

As of 8:36 CDT, the Canadian dollar was at US$0.7079 or C$1.4128, compared to Thursday’s close of US$0.7053 or C$1.4179.

Benchmark crude oil prices were stronger Friday morning on news the OPEC+ alliance will discuss the Saudi Arabia/Russia price war. Plans are to cut production by 10 million barrels per day. However, analysts believe with the current global economic situation due to the COVID-19 pandemic, a production cut of up to 35 million barrels per day might be required to effectively reduce the abundant supply on the market.

Brent crude oil gained US$3.62 at US$33.56 per barrel, while West Texas Intermediate (WTI) was up US$2.24 at US$27.56 per barrel. Western Canadian Select (WCS) increased US$2.67 at US$11.46 per barrel.

The TSX/S&P Composite Index opened with a small gain of 19.87 points at 13,117.71.

Gold was up US$5.23 at US$1,619.22 per ounce.

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