Oil Rigs Drop Pressures USD/CAD Higher as Crude Falls $2.48

USD/CAD is gaining strength as WTI crude oil plunges $2.48 to $59.05, representing a 4% decline in today's session. The sharp selloff in oil follows Baker Hughes data showing US oil rig count decreased by 4 to 418, while total rigs fell by 2 to 547. Market participants are pricing in slower global growth prospects due to potential tariff increases, which could significantly dampen oil demand. Additionally, easing Middle East tensions and increased production capacity are adding bearish pressure on crude prices. President Trump's projection of $2 per gallon gasoline is further weighing on energy sector sentiment. For USD/CAD traders, the correlation between falling oil prices and Canadian dollar weakness suggests continued upside momentum, with immediate resistance at 1.3650 and support at 1.3580. The commodity-linked CAD faces additional headwinds as Canada's energy sector represents a substantial portion of its export economy.