The UAE fuel price committee announced petrol and diesel prices for November 2024 on Thursday.
Starting November 1, Super 98 petrol will cost Dh2.74 a litre, compared to Dh2.66 in October. Special 95 petrol will cost Dh2.63 per litre, compared to Dh2.54 in October.
Meanwhile, E-Plus 91 petrol will cost Dh2.55 a litre, compared to Dh2.47 a litre in October. Diesel will cost Dh2.67 a litre compared to the current rate of Dh2.60.
Petrol prices have increased for November after falling in September and October.
A volatile month
The oil market experienced a volatile month in October 2023. Brent crude futures started the month at around $92 per barrel, but geopolitical tensions caused a brief spike to $96. However, this was short-lived as concerns about weakening global economic growth and potential demand destruction outweighed supply worries.
By the end of October, Brent crude futures had fallen back to around $84 per barrel. This decline was driven by several factors, including concerns about slowing economic growth in the US and Europe, as well as the impact of high inflation and rising interest rates on consumer spending.
Moreover, in the US, gasoline deliveries plunged to two-decade lows, indicating a significant decline in fuel demand. This trend was even more pronounced in emerging markets, where currency effects and subsidy cuts amplified the rise in fuel prices.
Despite the overall decline in oil prices, there were some positive signs as well. China, India and Brazil continued to show strong economic growth, underpinning global oil demand. Additionally, OPEC+ production cuts remained in place, helping to support oil prices.
Mixed projections
Oil price projections for November vary among analysts. Some predict a slight increase due to potential supply disruptions and geopolitical tensions. However, others expect prices to remain relatively stable or even decline further due to concerns about weakening global economic growth and oversupply.
Several factors will influence oil prices in November. On one hand, continued production cuts by OPEC+ could support prices. Escalating geopolitical tensions, too, could lead to price spikes.
However, a slowdown in global economic growth could weaken oil demand. Also, a strong US dollar could put downward pressure on oil prices.
How are petrol, diesel prices determined?
Since 2015, the UAE diesel and petrol prices have been moving in line with the international markets.
Prices are determined by the fuel price committee, chaired by the undersecretary of the Ministry of Energy. The committee includes members of the energy and finance ministries, as well as CEOs of Adnoc Distribution and Emirates National Oil Company.
The committee, when deciding the fuel pieces, does not rely on just one global market. It considers an average of global prices as well as operating costs of distribution companies.
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