Tuesday’s decision by the United Arab Emirates to drop out of the global oil cartel OPEC sent crude oil prices upward with Brent crude reaching $111.
The announcement came at a time when the ongoing war with Iran led to Iranian missile strikes on American bases in the country. The Strait of Hormuz remains closed while peace talks are stalled.
West Texas Intermediate rose $3.56 or 3.69% to close at $99.93 a barrel on the New York Mercantile Exchange.
Brent crude finished up $2.91 or 2.69% at $111.10 per barrel.
“The UAE’s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals. We thank OPEC and its member countries for decades of constructive cooperation,” the country’s minister of energy and infrastructure, Mohamed Al Mazrouei, said on X.
President Donald Trump wrote, without citing evidence, on social media on Tuesday that “Iran has just informed us that they are in a ‘State of Collapse.’”
Trump said Iran is asking for the U.S. to lift the naval blockade in the Strait of Hormuz “as soon as possible.”
What about natural gas?
Natural gas prices finished up on Tuesday, closing at $2.554 MMBtu with a gain of $0.004 or 0.16%.
Oklahoma energy stocks scored big gains in Tuesday’s trading with NGL Energy Partners jumping 8% and Mammoth Energy Services rising 7%. Many other energy stocks were in the range of 2% to 4% gains for the day.