Fuel prices in the United Arab Emirates will increase next month, reflecting changes in the global oil market. This announcement was made by the UAE fuel price committee and reported by the state news agency WAM.
In 2023, the UAE has adjusted petrol prices six times downward and raised them five times.
New Fuel Prices for November
Starting in November, fuel prices per litre will be as follows:
Super 98: Dh2.74 (up from Dh2.66 in October, a 3% increase)
Special 95: Dh2.63 (up from Dh2.54 in October, a 3.5% increase)
E-plus 91: Dh2.55 (up from Dh2.47 in October, a 3.2% increase)
Diesel: Dh2.67 (up from Dh2.60 in October, a 2.7% increase)
The UAE first liberalized fuel prices in 2015 to align them with market trends.
Global Oil Market Influences
Oil prices rose on Thursday due to an unexpected drop in US petroleum inventories. As of 9:12 AM UAE time, Brent crude, which serves as a benchmark for two-thirds of the world’s oil, was trading at $73.02 a barrel, up 0.65%. West Texas Intermediate, which tracks US crude, rose 0.64% to $69.05 a barrel.
According to the US Energy Information Administration, US crude stocks decreased by 500,000 barrels, reaching 425.5 million barrels in the week ending October 25. This decline marks a two-year low in petroleum stocks, as demand surged. In total, inventories fell by 2.7 million barrels, a drop not seen since November 2021. Analysts had anticipated an increase of 600,000 barrels.
Despite rising demand, crude futures are expected to record a weekly loss, alleviating concerns about potential supply disruptions in the Middle East. Oil prices dropped 6% on Monday following Israeli strikes on military sites in Iran, which did not target energy facilities.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, noted, “The fading geopolitical tensions that supported the bulls until this week have shifted to concerns about Chinese growth and supply/demand issues, both of which are negative for oil prices.”
The World Bank recently stated that global commodity prices are projected to fall to a five-year low by 2025 due to an oil surplus, which is expected to mitigate the impact of any broader conflict in the Middle East. Next year, the global oil market is anticipated to have a surplus of 1.2 million barrels per day, a situation only seen during the Covid-19 lockdowns of 2020 and the 1998 oil price crash, according to the World Bank report.
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