How do oil futures work oil-linked currency pairs react to

Oil-linked currency pairs react to "how do oil futures work" trends. Canadian dollar strengthened 0.4% as higher WTI futures hinted at improved national export revenues. The Organization of the Petroleum Exporting Countries and its allies agreed on a restrained oil output increase on par with earlier moves, a bet that the group can eke out more revenue without causing a crash in prices. So oil offers the kind of safe-haven potential that investors in gold like, and it also provides a means to hedge an investment portfolio , too. By investing in oil, advanced investors can offset a rising oil price on the rest of their portfolio, protecting against the often-volatile pricing of this key input. In the stock market, "how do oil futures work" drives energy ETF performance. The XLE gained 1.2% yesterday as nearer-month futures saw strong buying from Chinese refiners anticipating higher summer demand.