Oil prices rose 2.3% on Wednesday to $113.8 per barrel, driven by the continued closure of the Strait of Hormuz and a day after the UAE withdrew from OPEC and OPEC+.
The UAE said its decision followed a thorough review of its production policy and current and future capacity, and was based on its national interest and commitment to actively contributing to meeting the market’s urgent needs. The decision comes while near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term.
In its latest report, the World Bank projected a 24% increase in energy prices this year, reaching their highest levels since the war in Ukraine in February 2022, due to the severe shock the Middle East conflict is inflicting on global commodity markets. (Agencies)
