OPEC: (the real) Deal or no Deal? After many months of speculation, OPEC finally delivered. Member countries agreed in principle to control oil production for the first time in several years. Production was agreed to be cut by around 1.2 million barrels a day, by January 2017.
Oil has had a rollercoaster ride since late 2014, dropping from over $100 per barrel to under $30. The cause was quite simple:
Anyone who is trading crude oil or USD/CAD should be aware of the important correlation between them. We know that if oil price rises then the Canadian economy benefits as they own considerable oil reserves (third only to Venezuela and Saudi Arabia). Furthermore, let’s not forget that the USD will likely drop in value if oil prices rise, and […]