UAE: Will petrol prices go up or down in July after the Iran-Israel war?

Petrol prices in the UAE could be revised upward for the month of July as global oil prices shot up earlier this month due to regional military conflict.

Oil prices jumped after the Israel-Iran war and when later US attacked Iranian nuclear sites.

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Brent’s closing price on average was around $69.87 in June compared to $63.6 last month. Brent oil was trading in the mid $60s a barrel, but it jumped to close to $80 a barrel as the Israel-Iran war escalated and the US was also involved in the conflict.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said geopolitics aside, the supply-demand dynamics continue to favour softer oil prices.

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“Global demand prospects are weakening due to trade uncertainties, while supply is ample — thanks to faster production restoration from Opec+. Russia said yesterday it’s open to another output hike at the next Opec+ meeting due on July 6. So, if Middle East tensions are truly done and dusted, oil is more likely than not to fall back toward, or even below, the $60 per barrel level,” he said.

In the UAE, the Fuel Price Committee kept petrol prices for the month of June unchanged. Currently, Super 98, Special 95 and E-Plus 91 are selling at Dh2.58, Dh2.47 and Dh2.39 per litre, respectively.

Though retail fuel rates could go up next month, the official decision will be announced next week on Monday.

The UAE deregulated petrol prices in 2015 and since then rates have been revised every month to bring them in line with global rates.

Waheed Abbas

waheedabbas@khaleejtimes.com

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.