UAE fuel price committee is set to reveal new petrol and diesel rates for June on Friday. Retailing of petrol prices originally started in the UAE when the government decontrolled the prices of oil in August 2015, and the UAE adjusts its retail petrol prices on the last day of every month. The fuel price committee then determined and revised the retail prices of Super 98, Special 95, and E-Plus 91 to as much as 19 fils per liter higher than the previous month.
May’s price settings were Dhs3.34 for Super 98, Special 95 at Dhs3.22, and E-Plus at Dhs3.15. On the other hand, diesel dropped by 2 fils and retailed at Dhs3.07 in May as compared to Dhs3.09 registered in the earlier month. New York crude futures advanced to 34.75 US dollars per barrel from 34.67 US dollars on Monday.
Regional stocks, except for Chinese and Japanese shares, also gained today, as a global manufacturing boom helps investors head into the year-end with bullishness. WTI crude for January delivery was up at 34.755 US dollars from 34.675 US dollars in Monday’s trading. This was due to mass demand for fuel during summer in the United States and before the OPEC+ production policy decision that was due to be made on June 2nd.
Due to the demand, OPEC and its partners, namely the OPEC+, have been toning down the oil output since late 2022 to support the market. The reduction of 2.2 million barrels per day (bpd) is effective until June end, although it too can be further prolonged.
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Global oil demand is also expected to rise due to increased activity in the economy. Goldman Sachs has also lifted the global forecast for oil demand to 2030 and believes that the consumption level may reach its maximum level by 2034. This is the case under the assumption that the growth of the electric vehicle market will not be as fast as currently expected, thus maintaining refineries operating at above-average rates up to 2030.
The desire for oil consumption is expected to raise the revenue of producers such as the members of OPEC+ and it is likely to raise further the emissions of greenhouse gases from fossil fuels.
