Oil Rallies Toward $120 As Middle East Supply Risks Spiral

Oil prices extended their rally on Wednesday after reports emerged that the U.S. will tighten its blockade on Iranian ports, prolonging fears of reduced oil supply from the region, and as the UAE hit markets with its OPEC-exit announcement. Brent crude for June delivery jumped 6.45% to trade at $118.40 per barrel at 2.47 pm ET, while the corresponding WTI crude contract was up 7.20% to change hands at $107.10/bbl. Gasoline prices also continue to edge higher, with AAA reporting the average national price at $4.229 per barrel. The stalemate in the…