The United Arab Emirates’ (UAE) withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) will help reduce energy prices, which have soared due to a full-scale war in Iran. The US president has supported the move and sees it as a positive, Bloomberg reports.

“I think it’s great,” Donald Trump said Wednesday at the White House, when asked about the move. “It’s a good thing for getting the price of gas down, getting oil down, getting everything down.”

The UAE’s official withdrawal from OPEC is scheduled for next month, and the organization’s influence on markets is now at risk.

However, the market is reacting differently so far, with prices continuing to rise. Bloomberg analysts do not see the US president’s words confirmed. The price of Brent crude oil reached a record high on Wednesday.

The main reason for the increase in prices is logistics, which is connected with geopolitics. Now official sources record a complicated situation.

Here are some of the main factors that are currently shaping the market:

The oil market is completely dependent on the closure of the Strait of Hormuz.

OPEC dynamics will remain secondary for prices as long as this waterway is closed.

Only after its reopening will oil flows return to normal.

The demarche of the UAE was not unexpected, since the conflict had been brewing for a long time. This is the result of long-standing tensions between the UAE and OPEC leader Saudi Arabia.

The countries were arguing over several important issues:

The oil production level and strict quotas.

The UAE's desire to independently conduct its economic game.

Competition for influence in the region.

Donald Trump has noted Washington’s tough stance and urged the US Navy to prepare for a prolonged blockade of the Strait of Hormuz. The Americans will seize all ships coming to or leaving Iran until Tehran agrees to a new deal on its nuclear program.

In turn, Iran has promised to continue its own blockade of the strait.