Petrol prices in the UAE may increase for November as the Fuel Price Committee is set to announce updated rates on Thursday. In October, prices were adjusted downward for the second month in a row, with Super 98, Special 95, and E-Plus 91 selling at Dh2.66, Dh2.54, and Dh2.47 per litre, respectively.
UAE residents who are mindful of their budgets, along with logistics and transport companies, eagerly await the monthly price revisions to align their budgets for the upcoming month. The UAE updates petrol and diesel prices on the last day of each month to reflect global market rates, a practice initiated under the deregulation policy of 2015.
In October, the average Brent price was approximately $75.5 per barrel, up from $73 in September. The price fluctuated between $71 and nearly $81 per barrel, largely influenced by geopolitical tensions in the Middle East. Initially, prices surged to $81 due to concerns about potential Israeli attacks on Iran's oil facilities, but they dropped by over six percent following limited strikes by Israel on Iran, as both nations seemed to avoid escalating into a full-scale conflict.
Alex Kuptsikevich, chief market analyst at FxPro, noted that crude oil prices fell by six percent on Monday to $67 per barrel for WTI and $71 for Brent. He attributed this drop to Israel's attack on Iran's oil capacity, suggesting that both countries' political rhetoric aimed to prevent further escalation, leading to a significant reduction in the geopolitical risk premium. Consequently, prices returned to levels seen before the recent Middle East tensions.
In September, Kuptsikevich added, the price was near the lower end of its 40-month range, indicating a slowdown in the global economy.
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