UAE increases fuel prices as OPEC cuts oil production
The Emirates General Petroleum Corporation reported on Monday that after falling for three straight months, gas prices in the UAE are expected to increase by almost 10% in November 2022.
Costing is as follows – Special 95 – AED 3.20 a litre; Super 98 – AED 3.32 a litre; E-Plus – AED 3.13 a litre; Diesel – AED 4.01 a litre.
Crude oil prices, which have increased significantly globally since the start of 2022, have an impact on gasoline prices. Given that Russia is one of the world’s major oil exporters, the ongoing conflict between Russia and Ukraine is one of the main causes of the rising price of oil and, subsequently, gasoline.
Following the OPEC+ alliance’s announcement that it would significantly reduce output, the price of petroleum rose by around 10% in October. The implementation of this agreement is scheduled to start in November.
Since June, oil prices have fallen by almost 25% of their value, down from earlier this year as fears of an economic slowdown have grown due to worries about a global macroeconomic environment that is inflating too quickly.
Consumers feel the pinch as gas prices rise, mirroring the rise in the price of oil. West Texas Intermediate futures fell below $87 per barrel on Monday as a result of economic data from China that indicated a slowdown in factory and services activity.
According to current predictions from OPEC, the demand for oil will increase for another ten years. According to the group’s World Oil Outlook study, global oil consumption will reach 109.5 million barrels per day in 2035 and remain at that level for an additional ten years.
A 23-nation coalition led by Saudi Arabia and Russia said on October 5 that the Organization of Petroleum Exporting Countries and its partners will cut their output objectives for November by 2 million barrels per day. OPEC+ decided to reduce output earlier this month mostly due to an oversupply of oil on the market, according to the organization’s secretary-general.
