From waging war to winning war, Oil has made a long way in history. Now a days, Oil is considered on par with the greenback. During recent times, Oil prices are very volatile. When the pandemic hit across the world, the global demand for the oil got reduced, hence the oil prices plummeted to $17. During the Ukraine-Russia war, oil prices hit $135 as US sanctions on Russian oil Imports.
Oil:Global Scenario
As per worldometer, the highest oil producing countries are the United States, Saudi Arabia, Russia, China, Canada.
OIL vs CAD
Canada being the oil rich country and has the majority of revenue derived from oil mining and exploration. Hence pricing of the Canadian dollar is closely proportional to the oil price. In forex trading, it is evident that the USDCAD is negatively correlated with oil prices. CADJPY and CADCHF are positively correlated with the oil prices.
Technical perspective
Brent crude is in range bound between $100 to $114.Once it breaks the strong resistance at $114, it will reach the previous high of $124.On a long term perspective, Brent crude looks bullish.
Chart-Trading view
- Niviya Thankathurai
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