Reuters: Oil trims its gains after the UAE exits OPEC and OPEC Plus | economy

Oil prices rose by more than 3% – today, Tuesday – with the continued closure of the Strait of Hormuz almost completely and efforts to end the Iran war faltering, which prevents energy supplies coming from the Middle East from reaching the markets, but the UAE’s announcement of its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC Plus) reduced the gains.

Brent crude futures for June delivery increased 3.1% to $111.6 per barrel by 13:36 GMT, after increasing 2.8% in the previous session and recording the highest level at settlement since April 7. The contract rose on Tuesday for the seventh day in a row.

US West Texas Intermediate crude for June delivery also rose 3.9% to $100.3 per barrel after rising 2.1% in the previous session.

US West Texas Intermediate crude futures exceeded $100 per barrel for the first time since April 13 on Tuesday.

Some gains were dissipated after the UAE announced today its exit from OPEC and OPEC Plus, according to Reuters.

Brent crude oil is currently trading at $111.2 per barrel, according to Bloomberg data.

An American official said – yesterday, Monday – that Donald Trump is not satisfied with the latest Iranian proposal to end the war.

Iranian sources revealed yesterday that Tehran’s proposal to avoid discussing its nuclear program until the war stops and maritime disputes in the Gulf region are settled.

Iran closes shipping traffic through the Strait of Hormuz, through which about 20% of global oil and gas consumption passed, while the United States continues to impose a blockade on Iranian ports.

“The oil price exceeding $110 per barrel reflects a market that is rapidly reassessing geopolitical risks,” said Rystad Energy analyst Jorge León.

He added, “With peace talks faltering and no clear path to reopening the Strait of Hormuz, traders are taking into account the possibility of continued disruption to a vital artery of global supplies.”

He continued, “Even in the best of scenarios, any agreement between the United States and Iran is likely to be limited and partial, leaving the Strait issue unresolved, which means continued risks of rising prices.”

For his part, BVM analyst Tamas Varga said that the loss of about 10 million barrels per day of crude oil and products through the Strait of Hormuz will remain greater than the decline in consumption as inflationary pressures increase and demand declines, leading to an increasing imbalance in the oil market.

UAE exit from OPEC Plus

The United Arab Emirates announced on Tuesday its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC Plus alliance, starting on May 1, 2026.

The Emirates News Agency said that this decision “is in line with the country’s long-term strategic and economic vision” and the development of its energy sector, including accelerating investment in local energy production, and “consolidates its commitment to its role” as “a responsible and reliable producer that anticipates the future of global energy markets.”

The agency added that the decision came “after an extensive review of the UAE’s production policy and its current and future capacity, and in view of what the national interest requires and the state’s commitment to contribute effectively to meeting the urgent needs of the market.”