Canadian Financial Close: Loonie continues to rise with crude

Oil producers to talk production cuts

By MarketsFarm

WINNIPEG, April 3 (MarketsFarm) – The Canadian dollar was higher on Friday due to gains in crude oil.

The dollar finished the day at US$0.7071 or US$1=C$1.4142, compared to Thursday when it closed at US$0.7053 or US$1=C$1.4279.

Benchmark crude oil prices were stronger on Friday, as the OPEC+ alliance, including Saudi Arabia and Russia, are to discuss production cuts on April 6. Although a cut of 10 million barrels per day (BPD) has been proposed, industry analysts believe a much deeper reduction of 35 million BPD is required in order to shrink the growing surplus on the global market. That surplus is largely due to significantly reduced consumer demand stemming from the COVID-19 pandemic. The analysts believe any production cut must include the United States, Canada and other major oil-producing countries.

Brent crude oil gained US$4.53 to close at US$34.47 per barrel. West Texas Intermediate (WTI) crude oil rose US$3.20 at US$28.52 per barrel. Western Canadian Select (WCS) was up US$3.17 at US$11.96 per barrel.

The TSX Composite Index lost 159.54 points to close at 12,938.30, as fears continue that the pandemic will soon plunge the global economy into a recession.

Gold was up US$8.56 at 1,622.55 per ounce.

Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 2.95
Linamar Corp. up $ 0.39 at $ 28.27
Maple Leaf Foods dn $ 0.79 at $ 24.97
Nutrien Ltd. dn $ 0.77 at $ 45.75
Ritchie Bros Auctioneers Inc. up $ 0.06 at $ 49.51
Rocky Mountain Dealerships Inc. dn $ 0.05 at $ 4.00
(All figures are in Canadian dollars.)

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