Oil prices continued to rise on Friday, climbing by more than one per cent to surpass $114 a barrel and reach a new five-month high ahead of the UAE’s revision of retail fuel prices next week.
On Friday afternoon, WTI crude also crossed $100 a barrel amid supply concerns, trading at $101.20 a barrel, up 1.7 per cent. Brent crude was up 1.11 per cent at $114.40 a barrel.
Global oil prices have had a direct correlation with UAE petrol prices since 2015, when the country deregulated local fuel prices and linked them to international market rates.
The UAE Fuel Price Committee revises retail fuel prices at the end of each month.
In October, UAE fuel prices crossed Dh4 per litre to reach their highest levels in more than four years. Super 98 petrol costs Dh4.40 per litre, compared with Dh3.80 in September. Special 95 is priced at Dh4.28 per litre, compared with Dh3.69 last month, while E-Plus 91 costs Dh4.21 per litre, up from Dh3.61 in September.
For November, prices could be revised upwards if global oil prices remain at current levels or rise further next week amid Middle East tensions and supply concerns.
UAE motorists last saw record retail fuel prices in July 2022, when Super 98 reached Dh4.63 per litre, Special 95 climbed to Dh4.52 per litre and E-Plus 91 hit Dh4.44 per litre.
Whether petrol prices will surpass their 2022 record highs will be known on October 31, when the Fuel Price Committee announces retail fuel prices for November 2026.
Brent crude settled approximately four per cent higher at $113.17 a barrel on Thursday, its highest closing level since May, following reports that the US and Israel were considering additional military action against Iran.
According to Vijay Valecha, CIO of Century Financial, escalating geopolitical tensions in the Middle East have revived concerns over potential supply disruptions.
“Renewed Houthi attacks on Saudi Arabia, including a drone strike on Saudi Aramco’s Shaybah oil field, alongside the US decision to withdraw some diplomatic personnel and their families from Saudi Arabia, have heightened market uncertainty. Speculation surrounding potential US-Israeli strikes on Iran and Tehran’s reported attacks on tankers transiting the Strait of Hormuz are further supporting prices by increasing the geopolitical risk premium,” he added.
Source: Khaleej Times