The move is widely expected and therefore should be of no surprise for the market players. The economic consequences of oil supply cut extension are directly linked with oil producers but are less likely to dramatically affect the behavior of consumers or the actions of central banks.
API degree is inversely related to the density of crude oil. In general, crudes of API between degrees can be sold at greatest commercial values. Sulphur content determines the quality of a crude oil. This corrosive material decreases the purity of a crude oil. Therefore, a crude oil with high sulphur content sour crude should sell cheaper than one with low sulphur content sweet crude. There are two main benchmarks for pricing Crude Oil: Canada happens to be the world's seventh largest oil producer.
In fact, it's the U. It's interesting to see that aside from risk sentiment and fundamentals, oil also plays a big factor in Loonie price action. It could just give you critical insight to help you bag some Loonie pips! Other important group of influent pairs includes: See all the WTI technical approach.
See all the Brent technical approach. Crude Oil, commonly known as petroleum, is a naturally occurring fossil fuel liquid composed of hydrocarbon underground deposits and organic materials. The prices of this popular commodity are measured in USD.
Crude oil is classified into various grades according to density heavy vs light and sulphur content sour vs sweet. The lighter and sweeter the crude, the higher the price it can be sold, because refiners can produce higher yield of high quality refined products from it.
It has API gravity of Its low density and low sulphur content gave it the name 'light, sweet crude' and enabled refiners to produce high yield of gasoline. This type of crude oil is used as a benchmark in oil pricing and the underlying commodity of NYMEX's oil futures contracts.
Brent Brent is actually a blend of crude oil from 15 different oil fields the North Sea. From these 2 parameters, we can see that Brent crude oil is heavier and less sweet than WTI crude. Brent is suitable for refinery of gasoline and middle distillates. The Special Relationship Between Oil and the Loonie Some of you may already be familiar with the special relationship between oil prices and the Canadian dollar.
For those of you who aren't, let me fill you in on what you're missing! There's a reason why Canadian dollar traders keep track of oil prices-- the two often move hand in hand. When oil prices move down, it's not uncommon to see the Loonie follow suit.
Conversely, rising oil prices are usually accompanied by Loonie rallies. Why do these two share such a strong bond? It has a lot to do with Canada's economy.More...