OIL & USD - Markets & outlook
Brent Crude Oil - OIL:
August 12, 2025
Key Market Factors Affecting the OIL Currency:
1. Geopolitical Tensions in the Middle East:
- In June 2025, Israel launched strikes targeting Iranian nuclear facilities, leading to a surge in global oil prices. (en.wikipedia.org)
2. Potential Closure of the Strait of Hormuz:
- Iran threatened to block the Strait of Hormuz in June 2025, a move that could disrupt 20% of global oil supply and significantly impact oil prices. (en.wikipedia.org)
3. U.S. Dollar Weakness:
- Analysts expect the U.S. dollar to continue weakening due to concerns over the Federal Reserve's independence and rising fiscal debt, potentially influencing the OIL currency's performance. (reuters.com)
4. OPEC+ Production Adjustments:
- OPEC+ agreed to increase oil output by 547,000 barrels per day in September 2025, aiming to regain market share and meet global demand. (reuters.com)
5. China's Economic Stimulus Measures:
- China's implementation of a "moderately loose" monetary policy in 2025 could boost oil demand, affecting global oil prices and the OIL currency. (forex.com)