Dubai, UAE – Petrol prices in the UAE are expected to decline for the month of April as global oil prices remained relatively low throughout March.
The drop follows a reduction in the average price of Brent crude, which fell to $70.93 per barrel in March compared to $75 in February.
The UAE government, which typically announces revised fuel prices on the last day of each month, is expected to adjust rates accordingly in the coming days.
In March, Super 98 was priced at Dh2.73 per litre, Special 95 at Dh2.61, and E-Plus at Dh2.54.
The expected decrease in April comes as Brent crude was trading at $74.11 per barrel and West Texas Intermediate (WTI) at $70.01 in early trade on Friday, reflecting ongoing volatility in the global energy market.
Market Uncertainty and Oil Price Dynamics
Joseph Dahrieh, managing principal at Tickmill, noted that crude oil prices could experience heightened volatility in the coming weeks due to market uncertainty and geopolitical factors.
“The market reacted to the announcement of US tariffs on countries purchasing Venezuelan oil, as well as concerns over the broader economic impact of escalating trade tensions, which threaten to weaken global demand,” Dahrieh said.
He explained that uncertainty surrounding Venezuelan oil exports could contribute to a tighter supply in the short term.
Additionally, ongoing sanctions on Iranian oil could further limit global supply. However, fears of an economic slowdown due to tariff-induced costs could exert downward pressure on crude prices.
OPEC+ and Regional Tensions Impact Market Trends
Another key factor influencing petrol prices is the role of OPEC+ in crude production adjustments.
The group has been deliberating potential increases in oil output, which could exert additional downward pressure on prices. However, efforts to address overproduction from certain member states could help stabilize the market.
Oil prices, after experiencing weeks of decline, saw a slight rebound over the past two weeks. This shift in market sentiment led both Brent and WTI to record weekly gains, indicating a temporary recovery in prices.
George Pavel, general manager at Naga.com Middle East, highlighted the impact of regional geopolitical developments on oil prices.
“Recent US military strikes against Houthi rebels in the Red Sea, along with ongoing Israeli military operations in Gaza, have heightened concerns about potential supply disruptions in the region,” Pavel said.
He further noted that developments in the Russia-Ukraine conflict could introduce additional market volatility, particularly if diplomatic negotiations lead to a potential resolution.
“In addition to regional tensions, the US’ announcement of new tariffs on Venezuelan oil buyers, set to take effect on April 2, 2025, has created ripples in the global oil market,” Pavel added.
Looking Ahead
As the UAE awaits its monthly fuel price announcement, motorists are optimistic about a reduction in costs, reflecting the easing of global oil prices.
However, with ongoing geopolitical tensions, shifts in OPEC+ production, and economic concerns influencing the market, further fluctuations remain possible in the coming months.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members