Individuals stroll by an installation featuring a barrel of oil adorned with the OPEC emblem during the COP29 conference in Baku, Azerbaijan, on November 19, 2024. Maxim Shemetov/Reuters
Oil prices are increasing once more today, as worries about the continuing closure of the Strait of Hormuz overshadow reports that the United Arab Emirates will leave the OPEC oil cartel, allowing it to produce more crude.
Brent crude, the worldwide oil standard, increased by 2.3% to $113.8 a barrel, closing at a four-week peak on Tuesday. WTI, the US standard, has risen 2.5% to $102.4 per barrel.
“Prices rising above $110… indicate limited flow through the system’s essential channel,” wrote Stephen Innes, managing partner at SPI Asset Management, in a note.
US President Donald Trump has directed his staff to get ready for a prolonged blockade of Iran, the Wall Street Journal reported late Tuesday. Sources close to the process informed Xenix News that mediators in Pakistan anticipate a revised proposal from Iran in the coming days to resolve the conflict.
On Tuesday, the UAE announced it would exit the Organization of the Petroleum Countries later this week, a surprising decision that might boost global oil supply and reduce prices over time.
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