Crude oil hits a six-month high
A barrel of crude oil for July delivery closed at the highest mark of the year yesterday. An anticipated decline in U.S. inventories, combined with a nosediving greenback, drove oil up to $61.26 at the closing bell. Meanwhile the euro rose nearly 2% against the USD as signs appear to be finally pointing to inflation in the eurozone. The loonie also gained ground against its neighbour to the south, rising close to 100
points.
Higher crude oil prices will be put to the test on Friday when OPEC’s member nations agree on production levels. Should they opt to maintain or ramp up the current production, prices should fall, while a cut would have the opposite effect. This situation will be monitored closely and will no doubt dictate the trend in most asset classes in the coming weeks.
This morning, the European Central Bank announced that it would keep its key rate at 0.05%. Bank President Mario Draghi will issue a press release at 8:30 a.m.
