Loonie threatens to go under 70 cents US as oil down below $31 a barrel

The Canadian dollar flirted with the 70 cent US level today as oil prices sold off for the sixth straight day, with a barrel of the North American benchmark now going for less than $31 US, it's lowest level since December 2003.

A barrel of West Texas Intermediate was changing hands at $30.97 on Monday morning, down by more than six per cent and bringing its total loss since the start of the year to more than 15 per cent.

A Morgan Stanley report was the catalyst for the sell-off, with the investment bank saying in a note that strength in the U.S. dollar could push oil prices down to as low as $20 a barrel.

The Canadian dollar lost another third of a cent and is now threatening to go into the 60s, with a loonie trading at 70.26 cents US Monday afternoon.

"None of us know what the future is, but given this moment, where we've gotten very conflicting data, it makes investors nervous," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

Canadian oil fared even worse, with a barrel of the oil blend from Alberta's oilsands known as Western Canada Select trading at under $17 per barrel, it's lowest level on record.

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