Oil Dips as UAE Exit from OPEC Stirs Supply Outlook

​

On April 29, 2026, oil prices slipped as markets digested the UAE’s exit from OPEC, while supply concerns tied to the Hormuz blockade kept sentiment cautious.

Oil Slips After UAE Exit Raises Questions

Oil prices eased after a strong rally, signaling a brief pause in momentum. Brent crude for June slipped 1 cent to $111.25 a barrel, while the July contract fell 28 cents to $104.12.

The UAE’s surprise exit from OPEC points to a looser supply outlook over time. Yet, “the road ahead is rarely straight,” with near-term flows constrained by ongoing disruptions.

Supply Risks Limit Downside

Oil prices remain elevated near $110, supported by tight supply conditions. Iran’s closure of the Strait of Hormuz—handling about 20% of global oil and LNG—continues to weigh on flows.

U.S. crude inventories fell by 1.79 million barrels last week, alongside declines in fuel stocks, reinforcing supply concerns.