UAE: Global Oil Prices Surge $12 per Barrel in September
Since 2015, the United Arab Emirates (UAE) has implemented a policy of synchronizing its local retail fuel prices with global rates. This strategy involves the regular monthly adjustment of fuel prices to keep them in harmony with the shifts in global oil prices. This approach enables the UAE to swiftly adapt to alterations in the international oil market and uphold transparency in its domestic fuel pricing mechanism.
UAE Set to Revise Fuel Prices for October
In October, the United Arab Emirates (UAE) plans to bring its retail gasoline and diesel prices into line with international prices. The UAE Fuel Price Committee raised gasoline prices by more than nine percent in September, making it three months in a row that prices have increased. The United Arab Emirates has been implementing a policy since 2015 that involves monthly revisions to local fuel prices to bring them into line with global rates.
Global Oil Price Surge
Globally, oil prices surged by more than $12 per barrel in September. Brent crude, which was trading at $83.87 on August 28, climbed to $97.41 on September 28. This increase is attributed to rising global demand, production cuts by OPEC+, and a decrease in US crude stocks.
Impact on October Fuel Prices
The recent spike in global oil prices is expected to be reflected in the revision of fuel prices for October in the UAE. Analysts anticipate the possibility of oil prices rising further, potentially reaching $100 per barrel. Factors contributing to this trend include record global demand and substantial production cuts by key oil-producing nations.
Ongoing Fight Against Inflation
Hani Abuagla, a senior market analyst at XTB Mena, emphasized that the global oil market's dynamics suggest that the battle against inflation is ongoing. Saudi Arabia's announcement of an additional voluntary cut of 1 million barrels per day and Russia's reduction of exports by 0.3 million barrels per day have contributed to a tighter oil supply. Both of these actions have been extended until the end of the year. Abuagla noted that the earlier expected deficit of 2 million barrels per day by year-end is likely to be even greater.
The adjustment of fuel prices in the UAE reflects the country's commitment to aligning local prices with global market conditions. As oil prices continue to exhibit volatility and rise, consumers in the UAE may experience higher fuel prices in the coming months.