Global crude oil prices rise amid Houthi attacks on Saudi energy facilities and fresh supply concerns, as UAE motorists await next month’s fuel price announcement.
UAE petrol prices could rise in November as the ongoing Middle East conflict keeps global crude oil prices elevated.
Oil prices climbed again on Wednesday following Houthi attacks on Saudi Arabia’s energy facilities, adding to concerns over potential supply disruptions.
Brent crude rose above $116 a barrel on Wednesday morning after an attack on a Saudi refinery heightened fears about supply risks from one of the world’s major oil exporters.
Global oil price movements play a key role in determining retail fuel prices in the UAE. Since the country deregulated fuel prices in 2015, monthly rates have been adjusted in line with international market trends.
WTI and Brent crude were trading at $101.48 and $115.68 a barrel on Wednesday morning, marking gains of 1.6 per cent and 1.8 per cent, respectively.
UAE motorists could face another increase in petrol prices in November, following a sharp rise in October that pushed fuel costs to a four-year high. The UAE Fuel Price Committee is expected to announce the revised rates later this week.
In October, Super 98 petrol was priced at Dh4.40 per litre, up from Dh3.80 in September. Special 95 rose to Dh4.28 from Dh3.69, while E-Plus 91 increased to Dh4.21 from Dh3.61 per litre.
Meanwhile, December crude oil contracts averaged around $107.30 a barrel so far in October, compared with $102 in September. Global oil markets have remained volatile amid Houthi attacks on Saudi energy facilities and declining global oil reserves.
The key question for motorists is whether November’s petrol prices could exceed the previous record of Dh4.63 per litre, set in July 2022 following the Russia-Ukraine war. The UAE Fuel Price Committee is scheduled to announce the new rates on Saturday, October 31.
Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, said continued tensions between the Houthis and Saudi Arabia were adding to market uncertainty.
“However, diplomatic activity is preventing risks from translating into a stronger rally. Regional governments have stepped up contacts with Tehran in an attempt to revive negotiations, while Iran has shown some willingness to discuss a faster timetable under certain conditions. Any credible improvement in the negotiating track would reduce the perceived probability of renewed tensions and remove part of the geopolitical premium,” he said.
