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Global markets mixed so far Canadian dollar below 76 cents What to expect in home sales report What else to watch for this week ODV/Getty Images/iStockphoto Oil markets are suffering from what you might call mini and maxi shocks that threaten Canada’s economy and loonie, with ramifications also for interest rates. On the mini side is a bear market for global crude. Where Canadian prices are concerned, it’s nothing if not maxi. First, the global problem: West Texas intermediate, the U.S. benchmark, is now above US$60 a barrel having eased below that mark last week. Brent crude, in turn, is at about US$71, having declined to below US$70. "Factors behind the sudden slide include: rising inventories amid ongoing powerful gains in U.S. production, OPEC overproduction, and a watering down of the constraints on Iran’s exports," said Bank of Montreal chief economist Douglas Porter, referring to U.S. waivers on sanctions against Iran for several big importing countries. “On the first point, U.S. output has vaulted 2 million barrels per day in the past year alone to 11.6 million, the swiftest annual rise on record and making the U.S. the largest producer in the world,” he added in a report. On […]
