Oil shoots higher on OPEC talk

Oil prices hit $47.59

OPEC said it was concerned about "today's continuing pressure on prices" in a publication today and said it was ready to talk to other producers about the market.

It's the third consecutive day of sharp oil price gains.

For me, this is a story that's being massaged to fit the price action. OPEC has long said it would cut production but only if the rest of the world did as well. That's just not going to happen.

This is a pure squeeze and an incredible one.

USD/CAD implications

In terms of FX, this has been responsible for the turnaround in USD/CAD but what stands out most is that USD/CAD is still 20 pips higher on the day. Oil is up 27% from last Monday's low and yet USD/CAD is still higher. That's a deeply troubling sign for CAD bulls.