Petrol prices in the UAE could see a slight drop in September if oil prices stay on the lower side during the coming days.
Oil prices have been trending lower due to Opec+’s decision to hike output in September as Brent hit a closing low of $65 a barrel. But prices have slightly recovered over the past few sessions.
The average closing price of Brent crude in August was approximately $66.91 per barrel, lower than July’s average of $69.87.
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Petrol prices in the UAE are revised every month, usually on the last day of the month, based on the performance of oil prices in the global market.
On Sunday evening, Brent and WTI stood at $67.73 and $63.66 a barrel, respectively.
In the UAE, petrol prices for the month of August were slightly revised downward compared to the previous month.
Super 98 petrol costs Dh2.69 a litre in August, compared to Dh2.70 in July; while Special 95 petrol has been reduced to Dh2.57 per litre in August, compared to Dh2.58 last month. Similarly, E-Plus 91 petrol has been reduced by one fil to Dh2.50.
Petrol prices play a key role in the budget of the cost-conscious residents and motorists. Due to the increasing population in the UAE, the number of vehicles is also on the rise in the country.
Ole Hansen, head of commodity strategy, Saxo Bank said crude oil has been trading in relatively tight, supported by strong US refinery demand, inventory draws, and rising exports, while thin summer liquidity has capped rallies.
“Geopolitical factors, including Russia-Ukraine peace efforts and US pressure on India’s Russian imports, add near-term support, though any easing of sanctions is likely to be gradual. Opec+ supply growth and slowing demand growth continue to pose medium-term pressure, keeping prices range-bound for now,” said Hansen.
