OIL Market Update
29 May 2026 • 00:41 GMT
Oil prices have fallen back to near 30-day lows at around $96.17, about 4.2% below their three-month average of $100.40. Since hitting a high above $113.80 earlier, oil has experienced significant volatility, mainly driven by ongoing tensions in the Middle East. Disruptions in production and shipping routes, especially through strategic passages like the Strait of Hormuz, have taken a toll on supply, contributing to the recent lows.
Higher energy costs continue to weigh on currencies of oil-importing countries, while oil-exporting nations such as Canada and Russia have seen their currencies strengthen against the dollar. The volatile oil environment and geopolitical uncertainties keep market watchers alert, but oil remains well below recent peaks that approached and exceeded $110.
In the near term, if geopolitical tensions persist and supply disruptions continue, oil prices could push higher again, potentially reaching or exceeding $100 per barrel. This environment could influence currencies in oil-dependent economies and add to inflationary pressures globally, making the oil market a key factor in currency trading despite the recent declines.