Oil stays firm as Hormuz supply concerns persist

Oil prices retreated from earlier highs after the UAE said it would leave OPEC and OPEC+, but remained firm as the Strait of Hormuz stayed largely closed. Brent rose to $111.16 a barrel, while WTI climbed to $99.86.

LONDON: Oil prices gave up part of their earlier advance on Tuesday after the United Arab Emirates said it would leave OPEC and OPEC+, a development that eased some worries about supply.

Even so, crude remained near the upper end of a rally of almost 3%, as stalled efforts to end the Iran war kept the Strait of Hormuz largely closed and continued to restrict supplies from the Middle East.

Brent and WTI stay elevated

Brent crude futures for June were up $2.93, or 2.7%, at $111.16 a barrel by 1532 GMT. The benchmark contract was on course for a seventh straight session of gains.

US West Texas Intermediate crude for June rose $3.49, or 3.6%, to $99.86 a barrel. During trading, WTI briefly moved above $100 a barrel for the first time since April 13.

The market had earlier climbed more strongly, but those gains narrowed after the UAE said it would exit OPEC and OPEC+. That announcement reduced some of the immediate concern over supply tightness.

Still, prices remained firm as the lack of progress in efforts to end the Iran war kept attention on the Strait of Hormuz, a key route for oil shipments. With the waterway largely closed, supplies from the Middle East remained constrained, supporting prices despite the pullback from session highs.

Supply risks remain in focus

The latest moves left both major crude benchmarks elevated, reflecting continued market sensitivity to developments affecting Middle East energy flows.

Brent stayed above $111 a barrel in afternoon trade, while WTI held just below the $100 mark after briefly crossing that threshold earlier in the session. The sustained strength in prices came even after the UAE announcement, underscoring the extent to which traders remained focused on the supply impact of the situation around the Strait of Hormuz.

The session also marked a continuation of recent upward momentum in the oil market. For Brent, the rise put the contract on track for a seventh consecutive daily gain, while WTI’s move above $100 during the day highlighted the strength of the recent rebound.

Overall, the market pared part of its earlier rise but remained supported by ongoing concerns over disrupted Middle East supplies and the absence of a breakthrough in efforts to end the conflict involving Iran.