USD/CAD faces pressure as Venezuelan oil threatens Canadian exports

USD/CAD is under bearish pressure as Venezuela's resumption of heavy crude exports directly threatens Canada's oil market share, potentially weakening the Canadian dollar. Venezuela's new administration in Caracas plans to take control of national oil assets and restart heavy crude production, creating direct competition for Canadian oil exports to US refineries. Both countries produce similar heavy crude grades, and US Gulf Coast refineries are specifically configured to process these oils. With Venezuelan production potentially ramping up from current low levels, Canada risks losing significant market share in its largest export market. This development could pressure Canadian oil revenues and government income, creating downward pressure on CAD. Technical levels show USD/CAD support at 1.3550 with resistance at 1.3650. Traders should monitor oil price differentials and export volumes as key indicators for CAD weakness.