Brent crude extends rally to $85.76 as dollar strength reshapes energy markets

Oil prices target a third consecutive weekly gain while the US dollar approaches its largest monthly advance in nearly a year, driven by shifting Fed rate expectations.

By Handelsavisen Newsroom · Automated 2026-07-17 13:11 UTC · 1 min read

Brent crude futures climbed to $85.76 a barrel, gaining $1.53 in the session and positioning the benchmark for a third consecutive weekly increase.

The move underscores persistent buying interest in energy markets despite broader macroeconomic headwinds.

The rally in oil coincides with a significant strengthening of the US dollar, which recently hit a fresh 13-month high against a basket of major currencies.

The greenback is on track for its largest monthly gain in nearly a year, a shift driven by intensifying market expectations that the Federal Reserve may need to raise interest rates rather than cut them.

This dual dynamic of rising oil prices and a stronger dollar creates a complex trading environment.

While a stronger currency typically weighs on commodity prices denominated in dollars, the current oil uptrend suggests that supply-side concerns or resilient demand are overriding the currency headwind.