Global oil prices climbed to around USD 107 a barrel on Tuesday, one day before the UAE announces its fuel prices for October. The rise comes as concerns over supply disruptions in the Middle East continue to influence the oil market. The UAE Fuel Price Committee will announce the revised rates on Wednesday, September 30.
The monthly review generally tracks movements in global oil benchmarks. Brent crude futures for November rose 1.6% to USD 107 a barrel on Tuesday morning. West Texas Intermediate crude also gained 1.41% to USD 93.81 a barrel.
The latest oil movement comes after the UAE increased retail fuel prices for September by around AED 0.20 per litre. Super 98 was priced at AED 3.80 per litre in September. Special 95 stood at AED 3.69 per litre, while E-Plus 91 was priced at AED 3.61 per litre. UAE fuel prices reached an all-time high in 2024. Prices crossed AED 4 per litre during the period of heightened global oil market pressure linked to the Russia-Ukraine war. Oil benchmarks traded mostly around USD 100 a barrel during September. Market attention also focused on the Strait of Hormuz and supply conditions across the region.
Naeem Aslam, CIO at Zaye Capital Markets, said Brent crude had moved back towards 106-107 a barrel. He linked the move to uncertainty around US-Iran negotiations and unresolved supply concerns in the Middle East.
“Higher oil prices create a difficult combination for both sides of the Atlantic: they support energy shares, but they also increase inflation expectations, corporate transport and manufacturing costs, and pressure on household spending,” he said. Norbert Rücker, head of economics and next-generation research at Julius Baer, said the rise in fuel prices since summer created concern among consumers and politicians.
He also pointed to debate within the US government over possible diesel export restrictions. Rücker said the oil market is currently being driven strongly by supply concerns and risk premiums. The October UAE fuel prices will provide the next indication of how recent movements in global oil markets could affect motorists across the country.
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