Brent crude climbed to around $107 a barrel as UAE motorists awaited the October fuel price announcement on September 30.
Brent crude climbed to around $107 a barrel on Tuesday as UAE motorists awaited the announcement of October fuel prices, with the global oil market still unsettled by the US-Iran conflict and disruptions around the Strait of Hormuz.
Brent crude futures for November rose 1.6 per cent to about $107 a barrel, while West Texas Intermediate gained 1.41 per cent to $93.81. The rise came despite signs that crude exports from parts of the Middle East were beginning to recover.
The UAE Fuel Price Committee is due to announce the country’s October petrol and diesel prices on Wednesday, September 30. The monthly rates are adjusted in line with movements in global oil markets.
September Fuel Prices
For September, the committee raised retail petrol prices by around Dh0.20 a litre. Super 98 was priced at Dh3.80 a litre, Special 95 at Dh3.69, and E-Plus 91 at Dh3.61.
UAE fuel prices reached an all-time high in 2024, when petrol prices crossed Dh4 a litre following the disruption to global energy markets caused by the Russia-Ukraine war.
September has brought renewed pressure on crude prices. Brent has traded largely above $100 as uncertainty over the conflict and shipping through the Strait of Hormuz has kept supply risks elevated.
Oil Market Remains Volatile
Naeem Aslam, CIO at Zaye Capital Markets, said Brent had moved back towards $106-$107 a barrel as uncertainty around US-Iran negotiations and Middle East supply remained unresolved.
Higher oil prices are creating pressure beyond the energy sector, he said, with rising fuel costs feeding into inflation expectations, transport and manufacturing expenses and household spending.
Norbert Rücker, head of economics and next-generation research at Julius Baer, said the sharp increase in fuel prices since the summer had raised concerns among consumers and policymakers.
He also pointed to a debate within the US government over possible restrictions on diesel exports. Rücker said the current price surge was difficult to explain entirely through supply fundamentals, noting that fuel supplies in Europe and Asia appeared adequate and Middle Eastern and Asian oil-product exports were recovering.
What Happens Next
The direction of UAE fuel prices will depend partly on where crude benchmarks settle during the period used for the monthly review.
Oil markets remain sensitive to developments around the Strait of Hormuz, US-Iran negotiations and the restoration of regional export routes. Reuters reported that Middle Eastern crude exports rose in September as Saudi Arabia and the UAE increased shipments, although flows remained affected by the conflict.
For UAE motorists, the immediate question is whether October prices will extend the recent run of increases or ease as regional supply flows recover. The answer will come with the Fuel Price Committee’s September 30 announcement.
The UAE will announce fuel prices for October on September 30
Source: KT
