OIL Market Update
21 May 2026 • 00:45 GMT
Oil prices remain elevated, with WTI trading at around $109.10, well above its recent three-month average of $98.05. This marks an 11.3% increase and reflects ongoing supply concerns. Disruptions in the Middle East, especially due to geopolitical tensions and the Iran conflict, have caused serious worries about extended supply disruptions, pushing oil prices toward levels not seen since over three years.
The conflict and shipping issues through key points like the Strait of Hormuz are contributing to this rally, with prices flirting with the high $110s. If disruptions continue or escalate, oil could even test $120 later this year. These sustained high prices are also affecting currencies of oil-exporting countries, such as the Canadian dollar and Norwegian krone, which have strengthened against the US dollar.
For now, traders should watch for geopolitical updates and any new supply risks, as these will likely keep oil prices volatile. Higher oil costs can also add inflation pressure globally and influence currency movements further.