Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Loonie flat as conflict in Iraq intensifies, putting oil supplies at risk

TORONTO - The Canadian dollar was essentially flat Friday, as the conflict in Iraq intensified and triggered fears that oil supplies from the Middle Eastern country may be at risk.

The loonie was down 0.01 of a cent to 92.11 cents US.

In Iraq, Islamic militants vowed to march on Baghdad after pushing deep into parts of the country's Sunni heartland previously controlled by U.S. forces.

U.S. officials have ruled out putting troops back on the ground, despite this being the biggest threat to the country's stability since the Americans withdrew at the end of 2011.

On Friday, a representative for Iraq's top Shiite cleric urged citizens to take up arms and defend their country from the militants.

Mosul, one of the two captured cities, lies in an area that is a major gateway for Iraqi oil. While the loss of the city has no immediate effect on oil exports, now at over three million barrels a day, it adds to concerns over security and the country's plans to expand oil production.

The upheaval comes after the Organization for the Petroleum Exporting Countries met in Vienna this week and said it will maintain its current output of 30 million barrels a day. Iraq is OPEC's No. 2 oil producer.

The July crude contract advanced 38 cents to US$106.91 a barrel.

"Today, the focus is on oil markets, where prices have risen on the back of rising supply risk from developments in Iraq," wrote Camilla Sutton, chief FX strategist at Scotiabank.

"However, the impact of high oil prices on CAD are typically more powerful when they are high on the back of demand versus supply issues," Sutton said in a research note.

Meanwhile, investors were still digesting the latest announcement from the Bank of Canada.

In a semi-annual financial review Thursday, bank governor Stephen Poloz signalled that the central bank would likely keep interest rates on hold for the near future. Some analysts expect that date to be closer to the second half of 2015.

"(Poloz) has a fine balancing act between recognizing the shift in the fundamentals but highlighting that the underlying strength of the economy is still vulnerable and unbalanced," Sutton said. "For CAD (Canadian dollar), the core message is a zone of stability as the fundamentals have improved but interest rates are likely to remain on hold for an extended period of time."

In other commodities, August gold bullion added 10 cents to US$1,274.10 an ounce, while July copper rose a penny to US$3.03 a pound.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates