Oil drops to $60.79, weighing on commodity currencies CAD/NOK

Crude oil futures settled at $60.79, declining 0.25% ($0.15) on the day, extending weekly losses to 1.59% and bringing year-to-date declines to 15.43%. The persistent weakness in oil prices is applying downward pressure on commodity-linked currencies, particularly the Canadian dollar and Norwegian krone. Lower oil prices typically weaken CAD and NOK as both economies rely heavily on energy exports for revenue. The sustained decline in crude reflects ongoing concerns about global demand amid economic uncertainty and potential oversupply conditions. Technical indicators suggest oil remains in a downtrend, with resistance at $62.50 and support near $60.00. For forex traders, continued oil weakness could present opportunities to short USD/CAD and USD/NOK pairs, as the US dollar strengthens against these petro-currencies. Watch for any correlation breaks if risk sentiment shifts or if OPEC+ announces production adjustments.