Crude oil price has skyrocketed. These 4 currencies could benefit

Crude oil prices soared to the highest level in almost a decade as investors remained concerned about the ongoing crisis in Europe. Brent, the global benchmark, rose to $105 while Western Texas Intermediate (WTI) rose to $100. Here are some top currencies that could benefit as oil prices rise. 

US dollar

The US dollar has benefited slightly in the past two weeks as the crisis has gone ahead. It has benefited from its special role as the reserve currency of the world. At the same time, some parts of the American economy are benefiting from the rising oil prices because of the vast amount they produce. 

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The US produces more than 1 million barrels of oil per day, making it the biggest producer in the world. However, unlike other countries, the US consumes most oil it produces and also imports from countries like Saudi Arabia and Russia. 

Norwegian krone

The Norwegian krone has moved sideways in the past few days as investors watch the happenings in Ukraine. The USD/NOK pair is trading at 8.8692, where it has been in the past few days. The same is true with other pairs like EUR/NOK and GBP/NOK. 

The Norwegian krone will benefit because of the vast amount of crude oil and natural gas that Norway exports every day. Unlike the United States, Norway exports most oil that it produces. At the same time, the government owns a trillion dollar wealth fund that it will likely deploy in a bid to support the economy. 

Canadian dollar

Canada is the fourth-biggest oil producer in the world. It produces more than 4.7 million barrels of oil every day and exports mostly to the United States. Therefore, the country’s economy benefits when the crude oil price rises. This explains why the USD/CAD pair has moved sideways in the past few days. 

The Canadian dollar will also be supported by the actions of the Bank of Canada (BOC). Analysts expect that the bank will hike interest rates in a bid to slow the rising inflation. 

Chinese yuan 

The Chinese yuan has been in a strong bullish trend in the past few months. It is even trading at the highest level since April 2018 and has risen by 12% from its lowest level in 2020.

China does not produce oil and is the biggest consumer in the world. Yet the country will benefit as crude oil prices rise because it will likely receive shipments at a discount from the sanctioned Russia. Also, some countries will likely turn to the yuan as a new US dollar alternative.