Oil – the dark gold - is one of the world's main energy sources, which is why it has an important place in the market.

Canada is the World’s third largest oil exporter - exports over 3 million barrels of oil and petroleum products per day to the United States.
Thus, Canada is the largest oil supplier of the US. A higher the demand for oil, means a higher demand for CAD – CAD becomes stronger than USD. A lower demand for oil means that USD/CAD quotation will rise.

In conclusion, USD/CAD evolution is inversely proportional to the evolution of the oil price.