OIL Market Update
18 Jul 2026 • 01:25 GMT
Oil prices remain high, with Brent crude sitting just above $101 per barrel, the highest in over three years. The main driver has been recent disruptions in Middle East oil production and shipping, especially through the Strait of Hormuz, raising concerns about ongoing supply issues. These developments have pushed oil prices further, supporting currencies of oil-exporting nations like the Canadian dollar (CAD), Norwegian krone (NOK), and Russian ruble (RUB). Notably, the oil price against the US dollar has dropped about 2.3% from its three-month average, trading near 97.93.
The volatility reflects the uncertainty around Middle Eastern conflicts and the potential for prices to climb higher beyond $120 if disruptions persist. This surge in oil prices bolsters the US dollar, especially as traders seek safe havens amid geopolitical tensions. As energy costs rise, countries importing oil are facing inflation pressures, which may impact their currencies. Keep an eye on geopolitical developments and oil market movements, as these will likely influence currency trends in the coming days.