Petrol prices in the UAE are expected to rise in November as the ongoing conflict in the Middle East continues to keep global crude oil prices high.
In the latest escalation of regional tensions, oil prices jumped again on Wednesday following Houthi attacks on Saudi Arabia’s energy facilities.
Brent crude rose to above $116 a barrel on Wednesday morning after an attack on a refinery in Saudi Arabia renewed concerns about supply risks from the major oil exporter.
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Fluctuations in global oil prices influence the UAE’s retail fuel prices, as the country deregulated fuel prices in 2015 to align them with global oil prices.
WTI and Brent crude were trading at $101.48 and $115.68 a barrel on Wednesday morning, up 1.6 per cent and 1.8 per cent, respectively.
UAE fuel prices, which hit a four-year high in October, could rise further when rates are revised later this week.
In October, Super 98 petrol cost Dh4.40 per litre, compared with Dh3.80 in September. Special 95 was priced at Dh4.28 per litre, compared with Dh3.69 the previous month, while E-Plus 91 cost Dh4.21 per litre, up from Dh3.61 in September.
December contracts averaged around $107.3 a barrel in October so far, compared with $102 a barrel in September, amid heightened volatility in global oil prices following Houthi attacks on Saudi facilities and declining global oil reserves.
The question on the minds of many consumers is whether UAE petrol prices in November will surpass the previous record high of Dh4.63 a litre, reached in July 2022 following the Russia-Ukraine war. The answer will become clear on Saturday, October 31, when the UAE Fuel Price Committee announces the new rates for November.
Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, said persistent tensions between the Houthis and Saudi Arabia continued to fuel concerns.
“However, diplomatic activity is preventing risks from translating into a stronger rally. Regional governments have stepped up contacts with Tehran in an attempt to revive negotiations, while Iran has shown some willingness to discuss a faster timetable under certain conditions. Any credible improvement in the negotiating track would reduce the perceived probability of renewed tensions and remove part of the geopolitical premium,” he said.
Source: Khaleej Times