UAE: Will October See Further Petrol Price Drops?
Lower Global Oil Prices and Increased Saudi Production Likely to Affect UAE Fuel Rates
UAE Fuel Prices Expected to Drop in October Amid Falling Global Oil Prices
October fuel prices in the United Arab Emirates are probably going to decrease because of September’s lower international oil prices.
Due to reports of Saudi Arabia’s intention to boost production and stable supply, Brent oil prices increased from an average of $78.63 per barrel in August to $73 per barrel in September.
Oil lost more than 4 percent in two days last week after news that Saudi Arabia abandoned its $100-a-barrel target and plans to increase production.
WTI and Brent ended the weekend at $68.81 and $71.98 per barrel, respectively.
Since the UAE deregulated petrol prices in 2015 and aligned them with global prices, prices are revised at the end of each month. The UAE’s Fuel Pricing Committee will officially announce tomorrow to align retail petrol and diesel prices with global prices.
In September, Super 98, Special 95 and E-Plus were revised to Dh2.90, Dh2.78 and Dh2.71 per liter respectively.
“The OECD’s upbeat outlook, rising tensions in the Middle East, a 4.5 million barrel plunge in US oil inventories last week (which pushed US oil inventories to their lowest level in 2.5 years) and China’s massive stimulus measures did little to cheer oil investors. US crude back to $70 fell below, and sales are under pressure this morning. Despite price support factors, investors continue to reduce their net speculative long positions in crude oil,” said Swissquote Bank senior analyst Ipek Ozkardeskaya.
