WTI Crude Surges to $65.66, Highest Since August 6

WTI crude oil has rallied $1.65 (2.6%) to $65.66, marking its highest level since August 6, despite experiencing significant intraday volatility. The session saw a dramatic $1 selloff during US trading hours followed by a complete recovery, demonstrating strong underlying demand. Time spreads are widening notably, signaling improving supply/demand dynamics in the oil market. This oil strength could support commodity-linked currencies such as CAD and NOK, while potentially pressuring oil-importing nations' currencies. The recovery in oil prices may also contribute to inflation expectations, influencing central bank monetary policy decisions. Technical indicators suggest momentum building above the $65 level, with immediate resistance at the August high around $67. Traders should monitor oil's correlation with USD/CAD, which typically moves inversely to oil prices given Canada's significant energy exports.