WTI Crude Surges Past $77 on Record EIA Inventory Draw, USD/CAD in Focus

WTI crude oil surged $1.43 to a session high of $77.47 following a significantly larger-than-expected EIA crude inventory draw of -8.263 million barrels, nearly double the -4.566 million barrel consensus forecast. This marks the third consecutive week of substantial crude inventory declines, with the combined three-week draw setting an all-time record. Distillates and gasoline inventories also declined, reinforcing the tightening supply narrative. The EIA data largely confirmed the American Petroleum Institute's private estimate of an -8.33 million barrel draw reported the previous evening. The dramatic supply reduction comes amid geopolitical developments, with the report noting heightened urgency around US-Iran deal negotiations as a potential supply-side response. For forex traders, the sharp oil rally has direct implications for commodity-linked currencies, particularly the Canadian dollar. USD/CAD faces downward pressure as rising crude prices typically bolster CAD strength. Traders should monitor whether crude sustains above $77 and watch for follow-through in CAD pairs. Near-term, the persistent inventory draws suggest continued upside risk for oil prices, which may further support commodity currencies against the US dollar.