OIL Market Update
20 Mar 2026 • 00:28 GMT
Oil prices have surged to around $113.80 per barrel, reaching 90-day highs and about 57% above its three-month average of $72.40. This sharp rise is primarily driven by disruptions in Middle East oil production and shipping, especially near the Strait of Hormuz, a crucial global oil route. With ongoing tensions and the potential for extended supply issues, oil could climb further, possibly towards $120 per barrel if disruptions persist.
The surge in oil prices is impacting currencies of resource-rich countries. The Canadian dollar, Norwegian krone, and Russian ruble have all strengthened against the US dollar in response. This reflects how higher energy costs benefit these exporters, boosting their currencies. Conversely, countries that rely heavily on importing oil may face increased energy prices, which could weigh on their currencies.
Market focus remains on the geopolitical situation in the Middle East, with any escalation likely to keep oil prices elevated and volatility high. For traders, watch for further moves as market conditions evolve and supply concerns continue to influence oil and related currency markets.
