Canadian Dollar Exchange Rate Forecast (GBP/CAD): Pound Advances on Oil Woes as OPEC Meeting Takes Place

The meeting scheduled for today (Thursday 27th November) was ordered to discuss the possibility of a cut in oil production as a surplus is driving prices lower the world over. However, it appears as if the meeting may take some time to resolve as a pre-OPEC summit saw Russia, Mexico, Saudi Arabia and Venezuela suggest that they weren’t willing to cut their production levels to encourage oil prices higher.

Saudi Arabia Oil Price Cut Pressured Canadian Dollar (CAD) Exchange Rate Lower

Saudi Arabia caused a stir when it first decided to cut its oil prices several weeks ago—a development that saw the ‘Loonie’ commodity currency depreciate. In addition, United Arab Emirates Oil Minister Suhail bin Mohammed al-Mazroui suggested that oil production cuts shouldn’t be taking place because ‘the market will fix itself ultimately.’

However, there seems to be a large amount of speculation and debate surrounding the OPEC meeting with different views surfacing. Iranian Oil Minister Bijan Zangeneh commented: ‘The most important thing for all of us is the unity and solidarity of OPEC, and in this situation I believe we need to have the contribution of non-OPEC producers for managing the market.’

Zangeneh continued: ‘Some OPEC members believe that this is the time where we need to defend market share… All the experts in the market believe we have oversupply in the market and next year we will have more oversupply.’