Petrol prices could drop in the UAE next month as oil prices continue to trend downward, especially after the US and Iran reached a peace deal on Monday morning.
Brent’s closing prices are down more than $11 a barrel since the start of this month. The prices plunged more than four per cent or $3.7 a barrel on Monday morning alone after the US-Iran peace deal.
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Since the UAE announced deregulation of fuel prices in 2015, petrol and diesel prices are revised at the end of every month to bring them in line with global rates.
The petrol prices have been rising for the past few months due to the US-Israel-Iran war and closure of the Strait of Hormuz.
Prices rose for the fourth consecutive month in June with Super 98 priced at Dh3.95 a litre, Special 95 at Dh3.83 per litre, and E-Plus 91 at Dh3.76 per litre, rising eight per cent month-on-month.
Brent’s average closing price was $92.96 a barrel in the first two weeks of June compared to over $105 a barrel in the first two weeks of May. Therefore, it is expected that prices could drop next month if geopolitical tensions don’t escalate again and oil prices remain on a downward trend. An official announcement about the new petrol prices will be made at the end of this month.
Looking forward, as tensions abate and a diplomatic deal is put in place in the Middle East region, attention could turn to the balance of demand and supply as oil producers could gradually increase production. Chinese imports could remain in focus as they slowed to their lowest level in more than eight years last month.
