Oil unfazed, no smoke after UAE exit

April 29, 2026 (MLN):  Oil prices held steady on Wednesday after a recent multi-day surge, as markets reacted to unexpected developments from the United Arab Emirates’ announcement that it intends to exit OPEC.

Currently, Brent crude futures are up by $1.19, or 1.07%, to $112.45 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are up by $0.52 or 0.52%, to $100.45 per barrel by [11:56 pm] PST.

The move follows rising frustration in Abu Dhabi, with the UAE reportedly criticizing fellow Arab states for failing to provide adequate support in the face of repeated Iranian attacks during the conflict, adding strain to regional alliances.

This has raised expectations of a potential shift in future global supply balances, though any immediate impact on output is unlikely.

At the same time, traders remain focused on ongoing geopolitical tensions in the Middle East.

While the UAE’s departure from OPEC has added a bearish signal for longer-term supply expectations, the immediate impact is muted due to ongoing shipping disruptions in the region, as reported by Rueters.

Despite a declared ceasefire in the U.S.-Israeli conflict with Iran, the situation remains unresolved, with both sides still negotiating conditions to formally end hostilities.

Supply concerns continue to underpin the market after Iran reportedly restricted access to the Strait of Hormuz one of the world’s most critical energy transit routes, handling roughly a fifth of global oil and LNG shipments.

The United States has also imposed a blockade on Iranian ports, further tightening supply flows.

Negotiations between Washington and Tehran remain tense, with the U.S. demanding an end to Iran’s nuclear activities, while Iran is seeking sanctions relief, compensation related to recent fighting, and influence over operations in the Strait of Hormuz.

Copyright Mettis Link News