Oil have fallen by more than -2% so far today, reversing earlier gains after U.S President Trump told OPEC producers to “relax” as prices were too high.
Brent crude oil futures are down -$1.43 at +$65.69 a barrel, having earlier risen to a 2019 high of $67.47. West Texas Intermediate (WTI) crude futures is down -$1.38 at +$55.88 a barrel.
“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!” Trump tweeted.
U.S. crude oil production has hit a record +12M bpd, an increase of more than +2M bpd since early 2018. Exports hit a record +3.6M bpd this month. These record numbers are forcing other producers, especially in the Middle East, to start offering their crude at discounts.
Note: OPEC+ led cuts as well as U.S sanctions against Iran’s and Venezuela’s oil exports helped push oil prices to new 2019 highs last week.
Trump’s tweeted comments this morning follows a rally in crude prices in 2019 supported by a tighter supply outlook although they are still significantly lower than the peak of more than +$85 a barrel hit last October.
Loonie under attack
The commodity sensitive CAD has come under pressure ever since Trump tweeted his concerns at 06:58 am ET. USD/CAD has rallied form an overnight dollar low of C$1.3115 to trade atop of its intraday high of C$1.3155 and still looking to grind higher.