Global oil markets adjusting could potentially lead to a dip in petrol prices for UAE consumers in April.
The petrol prices in the United Arab Emirates (UAE) have seen a significant change in April 2023, with the prices of Super 98, Special 95, and E-Plus 91 approaching around 2.90-2.82 AED, 3.01 AED, and 2.96 AED per litre, respectively. This upward trend in fuel prices reflects the ongoing volatility in the oil market, influenced by geopolitical developments and economic uncertainty.
The market's instability has been fuelled by various factors, including OPEC+ production strategies, global oil supply-demand dynamics, and geopolitical tensions in the Middle East. After the November 2023 tranche was fully unwound, the April 2023 tranche became a focus, with OPEC+ adding barrels back into the market to address low inventories and steady demand. However, supply growth outside OPEC+ has been faltering, which potentially tightened the oil balance and supported price levels.
Escalating tensions in the Middle East, such as the US military strikes against Houthi rebels in the Red Sea, Israeli operations in Gaza, and the ongoing Russia-Ukraine conflict, have further heightened market concerns. On the other hand, potential peace talks in Ukraine could offset some of these risks.
The good news for consumers in the UAE is that the government is anticipated to reduce petrol prices at the end of April due to the decline in global crude prices. Brent crude averaged $70.93 per barrel in March, a decrease from $75 in February. This decline may provide relief at the pump for UAE residents.
Analysts such as George Pavel, general manager at Naga.com Middle East, and Joseph Dahrieh, managing principal at Tickmill, have commented on the market's instability. Pavel emphasised the need for market stability, while Dahrieh highlighted the impact of recent US tariffs on Venezuelan oil buyers and ongoing trade tensions on oil demand outlooks.
Looking ahead, OPEC+ is expected to increase crude production, which could further weigh on prices. However, OPEC+'s efforts to manage overproduction may prevent a steep decline in crude prices. The prices for Super 98, Special 95, and E-Plus 91 in the UAE for the upcoming month (April) are predicted to be Dh3.15, Dh3.03, and Dh2.96 per litre, respectively.
For a more detailed view of the petrol prices in the UAE for the months of January to October 2025, please refer to the provided table. This information offers a glimpse into the future of fuel prices in the UAE and the potential impact of ongoing geopolitical developments and economic uncertainties.
This news article is sourced from Khaleej Times.
- Geopolitical tensions in the Middle East, economic uncertainty, and OPEC+ production strategies have contributed to the ongoing volatility in the oil market, affecting fuel prices in countries like the United Arab Emirates (UAE).
- The global oil market is also influenced by supply-demand dynamics, with supply growth outside OPEC+ faltering, potentially tightening the oil balance and supporting high price levels.
- In response to the decline in global crude prices, the government in the UAE is anticipated to reduce petrol prices at the end of April, offering relief to consumers.
- The instability in the oil market has drawn comments from analysts such as George Pavel and Joseph Dahrieh, who have emphasized the need for market stability and discussed the impacts of recent trade tensions and US tariffs on oil demand outlooks.
