American, Canadian, Toronto & International News Commentary: Spreading Freedom in the Face of Tyranny
October 10, 2008
Oil Prices and the Canadian Dollar
Have you noticed the Canadian Dollar and Oil Prices always move together?
Since oil is an internationally traded commodity and since Canada is so small relative to the United States and the EU, price changes in oil are caused by international factors outside of Canada.
Canada exports around 2 million barrels of oil a day to the United States. If the price of a barrel of oil is $50 U.S., that is $100 million (U.S.) in purchases that occur every day. Because of the magnitude of sales involved, any changes to the price of oil has an impact on currency market.
When the price of oil goes up, Canadian oil companies receive more U.S. dollars. Since they pay their employees (and taxes and many other expenses) in Canadian dollars, they need to exchange U.S. dollars for Canadian ones on foreign exchange markets. So when they have more U.S. dollars, they supply more U.S. dollars and demand more Canadian dollars. The increase in supply of the U.S. dollar drives the price of the U.S. dollar down. Similarly, the increase in demand for the Canadian dollar drives the price of the Canadian dollar up.
The same is equally true when the price of oil drops, the Canadian dollar also drops in value because oil companies don't need as much.
Labels:
Canadian News,
Oil Prices News,
USA News
Subscribe to:
Post Comments (Atom)
Affordable Website Design & SEO
|
Featured Posts
The Sarcasm Symbol
Ever had some confusion online or with your cellphone when someone fails to catch the sarcasm? Well now with the SarcMark you can ge... |
|
Behold, the Scorpion Hydrogen Supercar
CARS - To the right is the future of supercars... it is a hydrogen supercar called the Scorpion. The Scorpion from Ronn Motors in Texas is t... |
|
Documents show Stephen Harper misusing public funds
CANADA - According to 950+ pages of documents obtained by the Canadian Press under the Access to Information Act the Privy Coun... |
|
Pink's Rosie the Riveter
ENTERTAINMENT - What I like about this video is how it meshes different social movements like feminism, veganism, anti-capitalism... |
|
California's Dustbowl
ENVIRONMENT - The photo on the right is a farm in California that has been put up for sale. Its just one of thousands of farms that are n... |
|
Is Steampunk the New Goth???
GOTHIC - Watch out what you see on the subway late at night because while in 2001 you might have seen some pretty freakish goths, by 20... |
|
Do you have enough Ice Water in your diet?
HEALTH - A Calorie (large C) is a measurement of the amount of energy needed to raise the temperature of a litre of water (1 kg's worth) ... |
|
North Korean timeline towards Inevitable War
POLITICS - The following is timeline of events that have occurred on the Korean Peninsula. 1945 - Japan surrenders to the United States a... |
|
Judgment Day is Tomorrow, so sayeth Cult
RELIGION - According to a cult based in California, Judgement Day is tomorrow (May 21st 2011) and Jesus Christ will return to the Earth a... |
|
Sex in Space Forbidden
SEX/TECHNOLOGY - Sex in outer space is a big no-no according to NASA. Not for professional astronauts at least, but the growing numb... |
Popular Posts / Last 30 Days
-
Visit amazon.com/author/moffat to get free short stories and huge discounts on fantasy books by Charles Moffat. Sale ends on October 20th.
-
CANADA - One of Canada's elite commando units, the JTF2 commandos, have returned home to Canada after serving in Afghanistan for almos...
-
Interracial Relationships is a big no-no for some people, however there's a lot of information out there showing that such relationship...
-
CANADA / ENVIRONMENT - Companies in Canada are cutting their emissions even though the government of Canada is still sitting on the fence w...
-
CANADA - Seriously... who was going to vote for a bald guy named Rocco Rossi??? According to polls 4% of Torontonians were thinking of voti...
-
Peasant Magazine is seeking submissions for Issue #2. Specifically it is looking for fantasy, historical fantasy, historical fiction an...
-
CARS - Nobody ever steals a pink car. According to a Dutch study which compared the colour of cars being stolen, pink is the safest colour ...
-
I just finished watching Sicko (the 2007 documentary by Michael Moore about American health care, or lack thereof) and it is way better tha...
-
And the similarities don't stop there. Hitler and Trump have a lot more in common. The context in which Adolf Hitler was elected is...
-
CANADA - Interesting Fact: Stephen Harper 's Conservative government in Canada has only shown up to work for 14 days between June 1st ...
No comments:
Post a Comment
Comments containing links will be marked as spam and not approved. We moderate every comment. If you want to advertise on this blog it is $30 per link.