Oil Rises 3% After UAE Says It Will Exit OPEC; WTI Tops $100 Intraday

US-Iran talks stall despite hopes for higher output

Oil prices rose again as traders weighed the United Arab Emirates' decision to leave OPEC+ and a deadlock in negotiations between the US and Iran.

Benchmark Brent crude for June settlement closed at $111.26 a barrel on April 28 on ICE Futures Europe, up 2.8% from the previous session. June West Texas Intermediate crude settled at $99.93 a barrel on the New York Mercantile Exchange, up 3.7%. WTI also climbed above $100 a barrel during the session.

The UAE said it will leave OPEC+ -- the Organization of the Petroleum Exporting Countries and its allies including Russia -- from May 1. The group has exerted decisive influence over global oil prices through tight coordination and the production capacity of its members.

The UAE, the third-largest oil producer among the bloc's 12 members, has sought greater leeway in recent years to increase output. Its departure deals a blow to the Saudi-led oil cartel that has had a major influence on global crude prices.

Despite expectations that the UAE's exit could lead to higher output, the impasse in US-Iran talks continued to support oil prices. The two sides remain far apart on key issues including the Strait of Hormuz and Iran's nuclear program.

Foreign media reports said Iran had proposed an interim agreement under which it would reopen the Strait of Hormuz in exchange for the US lifting its blockade of Iranian ports. The proposal would also defer more complicated issues, including Tehran's nuclear program, to follow-up negotiations.

Noh Jung-dong, Hankyung.com reporter dong2@hankyung.com