After a year of being more or less at par with the American dollar, the Canadian dollar took a pounding this past week, falling to 85 cents. And it did so in spite of the fact that our economy is doing so much better than theirs. The primary reason is the fall of oil prices. Canadians often forget that we are a major oil exporter, and America's number one source.
I was looking at the data yesterday. The US Energy Information Administration charts America's imports of crude oil and petroleum, by which they mean refined oil products, like diesel, and Canada provides 21 percent of America's crude and 21 percent of its petroleum. Mexico, America's other NAFTA partner provides 13 percent of its oil and 14 percent of its petroleum. Together that's a third of America's imports. Combined the Middle East provides only 26 and 20 percent, respectively.