OIL Market Update
16 May 2026 • 01:24 GMT
Oil prices have surged past $100 a barrel, reaching $101.19, a level last seen over three and a half years ago. The main driver has been ongoing disruptions in the Middle East, especially through the Strait of Hormuz, where increased tensions have threatened supply flows. These issues have caused wild trading swings over the past week, with oil fluctuating between as low as $67.17 and highs near $113.80.
The recent spike is also reflected in oil's strength against major currencies. Oil is now near its 7-day high against the US dollar at about 108.5, which is well above its three-month average of 95.85. Similar trends are seen against the euro, GBP, and Japanese yen, with crude trading around 13-14% higher in each case.
The combination of supply concerns and geopolitical tensions continues to support higher oil prices. If disruptions persist, oil could approach $120 soon, which might influence currency markets further, especially in oil-exporting nations. Keep an eye on these developments as they evolve.