**Crude Oil and Gasoline Prices Decline Amid Economic Concerns**
In trading today, June WTI crude oil fell by $2.01 (-1.88%) to close at $104.34, while June RBOB gasoline dropped by $0.0104 (-0.29%). This decline follows reports indicating that higher energy prices are beginning to impact demand and hinder global economic growth. U.S. Q1 GDP rose by 2.0%, falling short of the estimated 2.3%, while Eurozone Q1 GDP increased by 0.1%, also below expectations.
**Ongoing Geopolitical Tensions Impact Supply**
Concerns escalate over supply disruptions linked to ongoing military tensions in Iran, as the U.S. military prepares to take action. The U.S. has implemented a blockade of the Strait of Hormuz, crucial for global oil transit, affecting approximately 20% of the world’s oil supply. Goldman Sachs reports that crude output in the Persian Gulf has dropped by 14.5 million barrels per day, exacerbating potential global oil shortages, with current stockpiles down nearly 500 million barrels since the disruption began.
**UAE’s OPEC Exit May Influence Prices**
On April 13, the United Arab Emirates announced it will leave OPEC on May 1, a move that could lead to increased production outside of OPEC’s constraints, potentially bearish for crude prices. Additionally, the International Energy Agency highlighted that production losses due to the Iran conflict have reached 13 million barrels per day, with a recovery timeline extending up to two years for damaged energy facilities.
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