look news india
New Delhi. Amid the US-Iran war, there has been another major earthquake in the global oil market. The United Arab Emirates i.e. UAE, the third largest producer of OPEC, has announced to withdraw from both OPEC and OPEC+ from May 1, 2026. This news has dealt a major blow to the alliance of oil producing countries. On the other hand, international benchmark Brent crude remains above $111 per barrel, which is more than 50 percent above the pre-war price.
Crude oil prices increased for the seventh consecutive day
On Tuesday, crude oil prices closed with an increase of about 3 percent. Brent futures for June closed 2.8 percent higher at $111.26 a barrel, marking the seventh consecutive day of gains. US WTI crude jumped 3.7 per cent to $99.93 a barrel and also rose above $100 during the session for the first time since April 13.
Big blow to Saudi Arabia due to UAE’s exit
UAE is the fourth largest producer in OPEC+ and accounts for 12 percent of the total supply. Experts estimate that UAE may soon increase production by 10 to 15 lakh barrels per day. But John Kilduff of Again Capital says that due to the complete closure of the Strait of Hormuz, there is no way for the UAE to release this additional supply, so oil prices will continue to go up.
Hormuz closed – 20% of the world’s oil route blocked
Iran has closed shipping flows through the Strait of Hormuz, affecting about 20 percent of the world’s oil and LNG supply. Before the war, 125 to 140 ships passed through this waterway every day. According to Vortexa data, the amount of crude oil held on tankers worldwide that were stuck for at least seven days increased to 153.11 million barrels as of April 24, which is 25 percent more than April 17.
World Bank warns – Energy prices may increase by 24% in 2026
The World Bank warned on Tuesday that if supply disruptions in West Asia are not eased by May, global energy prices could rise by 24 percent in 2026, the highest level since the Russia-Ukraine war. Meanwhile, a drone attack by Ukraine has also caused a major fire at Russia’s Tuapse refinery, putting further pressure on global supplies.