New York, NY (PressExposure) June 02, 2009 -- "Mann International" believes that the resurgence in the prices of commodities including crude oil, timber and metals are responsible for the sharp appreciation of the Canadian dollar in recent weeks.
The currency - often referred to as the "Loonie" after a marine bird on the dollar coin - has risen from $1.19 a month ago to $1.09 in the face of US dollar depreciation and strongly rallying prices for crude oil and metals.
A "Mann International" source said that the rising oil price benefited Canada because its vast reserves of oil are in the form of oil tar sands which are uneconomical to extract when prices are below $70 per barrel.
Crude oil has doubled in price since the beginning of 2009 thanks to economic figures from China and India which suggest that both countries are witnessing a reversal of economic fortunes and also because of US inventories which have declined more than forecast.
"Mann International" has long advocated that the price of oil was unlikely to remain low for an extended period while capital expenditure on exploration and drilling was being cut by several large oil majors. The source added that rally in prices hadn't been helped by the slump in the value of the US dollar in which oil prices are denominated.
"Mann International" continues to maintain its stance on purchasing oil exploration and oil services companies saying that such firms stood to benefit significantly from the resumption of the bull market in crude oil.