OPEC Agrees to Cut Production
Canada is a major oil producer, so the Canadian dollar is sensitive to movement in oil prices. Crude prices jumped close to 7 percent last week, as investors reacted positively to an announcement by OPEC that members had reached an agreement to lower production, starting in January. The reduction in output is aimed at curbing the worldwide glut of crude and stabilizing oil prices. At the same time, some OPEC members are notorious for failing to adhere to their production quotas, and if the new agreement is not honored, oil prices could head lower.