Petrol prices in the UAE may see a drop in September due to the decrease in global oil prices in August. Since the deregulation of retail fuel rates in 2015, petrol prices in the UAE have been adjusted at the end of each month to align with global prices. Despite a slight increase in local fuel prices in August, Super 98, Special 95, and E-Plus currently stand at Dh3.05, Dh2.93, and Dh2.86 per litre, respectively. Budget-conscious motorists in the UAE eagerly anticipate these monthly price revisions to manage their expenses accordingly.
In August, Brent oil prices averaged around $78.63 per barrel, lower than the $84 per barrel seen in July. This decline can be attributed to weak demand from China and US crude stocks that fell less than expected. Brent oil primarily traded between $76 to $80 per barrel in August, briefly spiking to $82 due to concerns over production cuts in Libya and escalating conflict in the Middle East. Vijay Valecha, chief investment officer at Century Financial, anticipates a further decline in oil prices with the conclusion of the summer driving season leading to weakened demand.
Recent data released by the US Energy Information Administration revealed a decrease in US crude oil stockpiles as refineries increased their capacity use. Goldman Sachs has also lowered their oil outlook by $5 per barrel to below $80, citing soft demand from China and increased global supply from Opec+. Additionally, Oxford Economics projects oil prices to average $82.8 per barrel in 2021 before dropping to $77.5 per barrel by 2025.
With the uncertainty surrounding global oil markets, it is crucial for UAE motorists to stay informed about the latest developments in petrol prices. The fluctuation in oil prices has a direct impact on the cost of fuel in the UAE, making it important for drivers to monitor these changes closely. As the country continues to revise petrol prices monthly in response to global trends, motorists can expect potential savings on fuel costs in the upcoming month of September.
In conclusion, the UAE may witness a decrease in petrol prices for September as global oil prices remained on the lower side in August. The country’s practice of adjusting fuel rates in response to global trends has proven beneficial for budget-conscious motorists, allowing them to manage their expenses effectively. With Brent oil prices fluctuating between $76 to $80 per barrel in August, concerns over production cuts and escalating conflict in the Middle East have impacted the global oil market. As US crude oil stockpiles decrease and refineries increase capacity, the future of oil prices remains uncertain. However, projections suggest a downward trend in oil prices, which could translate to savings for UAE motorists in the near future.
