The Canadian oil benchmark is Western Canada Select and it’s not painting a pretty picture today.
Prices have been nearly halved since October and today broke below the 2011 and 2010 lows.
Western Canada Select oil
That is an ugly chart and it looks like a straight shot to the 2008 low of $21.67,
For the Canadian dollar, that could mean plenty of pain ahead — like 1.30.
Bank of Canada Governor Stephen Poloz sounded dismissive of risks to the economy from oil and the global economy today, preferring to focus on the pickup in US growth but with inflation falling and house prices at risk, the BOC might be wise to switch to a dovish bias.
