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RISK DISCLOSURE

WHAT WILL HAPPEN TO OIL AND NATURAL GAS WHEN USD BECOME STRONG ?

When the USD becomes stronger, it typically has a negative effect on the price of oil and natural gas. This is because oil and natural gas are priced in USD on global markets, and a stronger USD makes them more expensive for buyers who use other currencies.






When the USD is strong, it becomes more attractive for investors to hold US dollars instead of investing in commodities like oil and natural gas, which can cause a decrease in demand and ultimately lead to a drop in prices. Additionally, a stronger USD can make it more expensive for countries with weaker currencies to purchase oil and natural gas, which can further reduce demand.


However, it's important to note that the relationship between the USD and the prices of oil and natural gas is not always straightforward, and there are many other factors that can influence prices. Factors such as supply and demand dynamics, geopolitical tensions, and weather patterns can all have a significant impact on the price of oil and natural gas, and can sometimes override the effects of currency fluctuations.

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