Despite evolving geopolitical tensions in the Middle East, the global price of oil remained stable, signaling a possible drop in petrol prices in the UAE. The UAE fuel price committee is expected to revise retail fuel prices for September to align them with global rates.
Since the government deregulated oil prices in August 2015, the UAE has been adjusting retail petrol prices on the last day of each month to align with global rates. Each month, the Ministry of Energy and Infrastructure in the UAE sets fuel prices based on the average global oil prices, whether they have soar or plummet. The retail prices of oil (including the operating costs of distribution companies) hit an upper limit of 0.06 fils per liter in August compared to July 2024. Super 98, Special 95, and E-Plus 91 were priced at AED 3.05, AED 2.93, and AED 2.86 per liter, respectively. Subsequently, the cost of diesel rose marginally to AED 2.95 in August compared to AED 2.89 the previous month.
As a result of recent developments in the Middle East’s oil supply chain, global oil prices stabilized in early trading on Friday. On Thursday, Libya’s oil production, approximately 700,000 barrels per day (bpd), was offline, and key exports were halted amidst agitations from rival factions in the region. Brent crude traded near $80.32 a barrel, up $0.38 or 0.48%, as of 10:30 GST on August 30, while US West Texas Intermediate (WTI) crude futures rose by $0.27 or 0.37% to $76.17 a barrel. These forecasts indicate that crude oil price volatility is nearing its apex, but prices point toward an alternative scenario in the UAE market this September.
Additionally, OPEC countries, in conjunction with their allies that form OPEC+, are geared to systematically trim an estimated voluntary production of 2.2 million bpd over the course of a year from October 2024 to September 2025.
