How Oil Moves with USD/CAD. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE Crude Oil and USDCAD, Correlation
You may have heard of commodity currencies; these are currencies where the country is exporting a commodity. Like for instance Australia with gold and Canada with crude oil and that means that country’s currency is effected by the price of the commodity.
How Oil Moves with USD/CAD
Canada exports 3 million barrels of oil and other petroleum products to the USA per day. That is going to effect the USD/CAD cross in particular the Canadian Dollar.
If Canada has a fixed costs for producing a barrel of oil; if this cost is $5. If crude oil is trading at $50, they’re making $45 per barrel. Now let’s say that the next year the price of crude oil doubles to $100. The price of production stays the same but Canada is now making a lot more per barrel of crude oil in profits.
More money flows into Canada’s economy and that will increase the value of the Canadian dollar.
Oil has had a negative correlation with USD/CAD over the years 2000 to 2016.
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well, it doesn’t look that way on a chart do any of you clapping seals look at a chart before you attach your Lipps to someone’s ass!
who is watching this during oil crash
It’s true. Most of the petroleum from Alberta is shipped by pipeline to Texas. We are only allowed to trade oil in US dollars.
Excellent Explanation
Nice insight
Hi when you say crude do you mean both Brent and WTI?
Good informative video about loonie oil and gas only 10% of GDP so its not the only bread and butter
The nitty gritty of economics of supply and demand Thanks