Petrol prices in UAE: Will fuel rates drop in March?
It is anticipated that petrol prices will decrease in March 2025 due to lower global oil prices throughout February.
The Organisation of the Petroleum Exporting Countries together with its partners (Opec+) announced their intention to incrementally raise oil production beginning April 1, 2025 which caused global oil prices to decline earlier this month.
The average price of Brent oil was $75 per barrel in February, which was lower than its $77.55 average in January. The UAE government has set Super 98 fuel price at Dh2.74 per litre while Special 95 costs Dh2.63 and E-Plus stands at Dh2.55.
The energy market experiences increased pressure from the instability brought about by US crude oil inventory fluctuations. The latest reserve statistics showed a rise which strengthened market expectations about an imminent short-term oversupply. The current market conditions encouraged traders to diminish their long futures holdings which accelerated the downward trend in WTI prices.
Investors will continue to monitor Opec's future actions and global economic indicators which affect energy needs in this unpredictable market. Market perceptions of supply and demand balance will determine crude oil price movements in future trading sessions.
Analysts have identified that macroeconomic factors including US Federal Reserve monetary policy and interest rate expectations played a role in the reduction of oil prices. International buyers face higher oil costs when the dollar strengthens which leads to reduced demand and price decreases.
Senior market analyst Antonio Di Giacomo explained the crude oil price decrease as a result of investor uncertainty along with worries about upcoming Opec+ production increases. The market impact of this anticipated decision became substantial because of the strong dollar and increasing US inventories as he explained.
Century Financial's chief investment officer Vijay Valecha explained that hedge funds have reduced their positive positions on crude oil which shows that market sentiment is becoming less optimistic.
Traders worry about US tariffs and Ukraine war discussions as multiple factors drive oil prices down in recent weeks. The Kurdistan region of Iraq might restart exports while Opec+ considers postponing its planned production increases according to Valecha.
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