Crude Oil Swings 16% from $119 High as G7 Eyes Strategic Reserves

Crude oil experienced extreme volatility on Monday, surging to an intraday high of $119.48 before plunging 16% to a low of $96.24, though prices remain approximately 10% higher on the day. The sharp reversal came after G7 finance ministers issued a joint statement confirming they are closely monitoring energy markets and stand ready to take necessary measures, including the coordinated release of strategic petroleum reserves. The ministers announced plans to reconvene tomorrow, signaling urgency in addressing the supply crisis. The wild price action carries significant implications for commodity-linked currencies such as USD/CAD and USD/NOK, as elevated oil prices typically support the Canadian dollar and Norwegian krone. For USD/CAD, sustained crude strength could push the pair lower as CAD benefits from higher energy revenues. Traders should monitor G7 follow-through actions and any concrete SPR release announcements, which could trigger further downside in crude and reverse recent CAD gains. Heightened volatility warrants caution with wider-than-normal stop levels on commodity-correlated forex positions.