Fuel prices for June are expected to drop in the UAE after global oil prices mostly traded lower in May than last month.
Globally, Brent mostly traded in the range of $82 to $83 a barrel in May 2024, averaging $83.35 compared to last month’s average of $88.79. Prices were subdued due to the abundant crude supply and weaker demand in Asia.
In the UAE, the Fuel Price Committee revises retail petrol rates for the coming month on the last day of each month to bring the rates in line with the global crude prices as part of the deregulation policy.
Petrol prices were raised for a fourth consecutive month in May due to geopolitical tension in the Middle East pushing the global rates higher. In May, Super 98 sold at Dh3.34 per litre, Special 95 at Dh3.22 per litre and E-Plus at Dh3.15 per litre. These were the highest prices in the past 7 months.
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Vijay Valecha, chief investment officer, Century Financial, said oil has climbed this year due to tensions across the Middle East and output cuts by the Organisation of the Petroleum Exporting Countries (Opec) and its allies, although prices have softened since early April because of abundant supply outside of the group and weaker demand in Asia. “Opec+ is set to meet online on Sunday and expected to roll over its curbs into the second half of 2024,” he said.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the tense geopolitical setup is supportive of further gains along with the rising US demand into summer and Opec’s restrictive tone regarding its outlook.
“China is also spending big to prop up its sputtering property market – a thing that brings further support to oil and commodity prices. Sentiment in oil is tilted to the upside, but there is one major risk to rebound above the $80pb level: a potentially waning reflation trade. If the central banks temper their rate cut plans into summer, demand outlook for oil could get hammered and the latter could limit recovery,” Ozkardeskaya said.
| Month | Super 98 (in AED) | Special 95 (in AED) | E-Plus 91 (in AED) |
| January 2023 | 2.78 | 2.67 | 2.59 |
| February | 3.05 | 2.93 | 2.86 |
| March | 3.09 | 2.97 | 2.90 |
| April | 3.01 | 2.90 | 2.82 |
| May | 3.16 | 3.05 | 2.97 |
| June | 2.95 | 2.84 | 2.76 |
| July | 3.00 | 2.89 | 2.81 |
| August | 3.14 | 3.02 | 2.95 |
| September | 3.42 | 3.31 | 3.23 |
| October | 3.44 | 3.33 | 3.26 |
| November | 3.03 | 2.92 | 2.85 |
| December | 2.96 | 2.85 | 2.77 |
| January 2024 | 2.82 | 2.71 | 2.64 |
| February | 2.88 | 2.76 | 2.69 |
| March | 3.03 | 2.92 | 2.85 |
| April | 3.15 | 3.03 | 2.96 |
| May | 3.34 | 3.22 | 3.15 |