Canadian Dollar Now Trading BELOW US$0.70

[pierrelebel]

We all knew it was just a matter of time:

https://beta.finance.yahoo.com/quote/CADUSD%3DX/news

[mr.elmwood]

It has room to go down a little more.

The mood is for the US dollar to keep going up. The Greenback going up, has a multiplier effect on oil going down. Western Canada Select is already trading in the teens. How much longer before they have to pay people to take the stuff?

The Americans can produce more oil and natural gas than we can, and they can do it cheaper.

I am good with a 70¢ Loonie. That gives me a 42% bonus on my sales. Compared to when the Loonie peaked, I am making 50% more on my money. I buy in Loonies and sell in Greenbacks.

[widgetc]

Some analysts predict $25 and even $20 a barrel oil! Some how pump prices are not down all that much though!

[lucitabby]

Got gas yesterday in Calgary for 74.9 cents a litre

[recped]

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@widgetc wrote:

Some analysts predict $25 and even $20 a barrel oil! Some how pump prices are not down all that much though!

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Well one reason is that the Federal Excise Tax and the Provincial Fuel Tax are flat amounts. Only the GST is a variable percentage which means that currently even if the price for oil went to zero you would still be paying 25 cents per litre (plus GST) in taxes.

The other main factor is that there is much more to the price of refined gasoline than simply the price of the raw materials. Refining and transportation costs don't really change when Oil drops 10 or 20%.

Conversely if oil were to hit $100/barrel, triple what it is today, gasoline will not be $2.70/litre (triple the current price).

[widgetc]

With $100 a barrel oil gas was $1.29 here and with $30 a barrel it is still over $1.00 per litre.

http://www.thesudburystar.com/2015/01/10/sudbury-being-gouged-ndp-charges

[zee-chan-jpn-books]

It makes me sad that the CAD is dropping so much. My salary is shrinking relatively with grocery getting more expensive... and since I take the bus to work half of the time the slightly cheaper gas ($1.08/L yesterday) is only helping a little 😞

[gauge33]

According to a currency analyst and currency trader on BNN yesterday and who predicted the 69 cent dollar two months ago, he is now saying manufacturing here will not improve substantially until we see a 59 cent dollar. Can he be correct 2 times in a row?  

[gauge33]

Green energy freaks such as Wynne, May, Gore, Suzuki etc might want to rethink green energy policy. Any one heard from them?World oil consumption lessens and economies weaken as oil storage balloons. Dollar weakens along with it.

To top it all off in Canada we have a directionless NDP government in oil rich AB and a Federal government ill equipped to manage a down turned economy. Alas not to worry, they will borrow tens of billions for infrastructure providing short term gain and long term pain. 

[ypdc_dennis]

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@gauge33 wrote:

Green energy freaks such as Wynne, May, Gore, Suzuki etc might want to rethink green energy policy. Any one heard from them? World oil consumption lessens and economies weaken as oil storage balloons. Dollar weakens along with it.

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I'm surprised you think green energy policies have anything to do with the value of the dollar.

World oil consumption has been steadily rising NOT shrinking -- although that may change in 2016 (and not due to green policies).

Current world oil production has also been rising. And mainly because of the rapid growth in USA production this increase ended up far ahead of demand.  And since oil producers are playing a game of chicken to see who will cut back first, we end up with an oil glut.

And locally, the US doesn't need Canada's oil any more (thanks to all those shale producers), so the price has fallen sharply. Fewer US dollars buying oil from Canada means the balance of trade and the value of the dollar takes a beating.