Loonie Surges as Oil Prices Dip

The Canadian dollar strengthened on Wednesday morning, but crude oil prices eased off. The loonie's value rose to US$0.7187 or US$1=C$1.3914 as of 8:37 a.m. CDT.

This is compared to its Tuesday close of US$0.7180 or US$1=C$1.3927. The United States Dollar Index was down by 0.13 points at 99.70, indicating a slight weakness in the US dollar.

The American Petroleum Institute reported that U.S. crude oil inventories grew by 9.072 million barrels in the week ended August 7, contrary to analysts' expectations of a 500,000-barrel draw.

Brent crude oil prices fell by US$0.57 at US$88.34 per barrel, while West Texas Intermediate declined by US$0.43 at US$82.77/barrel.