Loonie Slips as Oil Prices Decline Amid Saudi Pipeline Disruption
The Canadian dollar weakened on Tuesday morning, dropping to levels not seen in over a month. The loonie was trading at around US$0.7121 or US$1=C$1.4043 as of 8:48 a.m. CDT, down from its previous level of US$0.7132 or US$1=C$1.4021. This decline comes amidst a broader trend in the global economy.
Crude oil prices continued to fall on Tuesday, with Brent crude oil dropping by US$1.48 at US$98.86 per barrel and West Texas Intermediate retreating by US$1.58 at US$94.20/barrel. The decline in oil prices is attributed to reports that the East-West pipeline in Saudi Arabia, damaged by Iran-backed Houthi rebels, is already pumping at low rates.
The TSX/S&P Composite Index showed a gain of 290.35 points at 36,299.75, while gold lost US$17.40 per ounce at US$4,366.50.