October Fuel Prices May Decrease in UAE
Could Fuel Prices Drop Further in October?
Fuel prices may continue to decline in October in the United Arab Emirates, as global oil prices were lower in September.
The average price of Brent oil per barrel in September was close to $73, compared to $78.63 in August. Several factors contribute to this, such as strengthened supply and news of increased production in Saudi Arabia.
Oil prices dropped more than 4 percent last week in just two days after reports emerged that Saudi Arabia intends to abandon the $100 per barrel price target and will increase production.
The price of WTI and Brent oil closed the weekend at $68.81 and $71.98 per barrel.
The UAE deregulated fuel prices in 2015 and has since adjusted them according to global prices. At the end of the month, the UAE Fuel Price Committee will officially announce the retail prices for gasoline and diesel, ensuring they align with global market prices.
In September, the prices for Super 98, Special 95, and E-Plus were adjusted to 2.90, 2.78, and 2.71 dirhams per liter, respectively.
Optimistic OECD outlooks, rising tensions in the Middle East, last week's 4.5 million barrel draw from US oil reserves (bringing them to a 2.5-year low), and Chinese stimulus measures did not bring a revival to the oil market. The price of American crude oil slipped below $70 again and remains under selling pressure this morning. Investors continue to reduce their net speculative long positions in oil despite supportive pricing factors.
