The Fuel Price Committee of the UAE has announced the updated retail fuel prices for August, reflecting an increase in pump costs for petrol and diesel due to a rise in global crude prices earlier this month, as reported by the state news agency, WAM.
– Diesel: Dhs2.78 per litre, up from Dhs2.63 per litre in July
– Super “98”: Dhs2.69 per litre, slightly down from Dhs2.70 per litre last month
– Special “95”: Dhs2.57 per litre, decreased from Dhs2.58 per litre previously
– E-Plus “91”: Dhs2.50 per litre, a minor drop from Dhs2.51 per litre in July
Oil Prices Decline Amid Mixed Signals
On Thursday, oil prices experienced a drop as traders assessed the potential for supply shortages amidst US President Donald Trump’s call for an expedited resolution to the tensions in Ukraine through increased tariffs, while a surprising rise in US crude inventories also pressured prices.
Brent crude futures for September, which are set to expire on Thursday, decreased by 18 cents, or 0.3 percent, landing at $73.06 per barrel by 0650 GMT. The more actively traded October Brent contract fell 26 cents, or 0.4 percent, to $72.21.
Meanwhile, US West Texas Intermediate crude for September dropped 17 cents, or 0.2 percent, to $69.83 per barrel.
Both benchmarks had closed 1 percent higher the previous day.
According to Priyanka Sachdeva, a senior market analyst at Phillip Nova, “Oil contracts have been fluctuating within a narrow range today, as neither buyers nor sellers show enough conviction to push prices significantly up or down, especially with the August 1 deadline approaching for new US tariffs.”
Competing Market Dynamics
Sachdeva further explained, “While Trump’s aggressive stance on Russian oil sanctions sustains tight-market premiums, factors like a strong dollar, sluggish global growth indicators, and the unexpected rise in US crude inventories are limiting price increases.”
Trump indicated he would begin implementing new measures against Russia, including 100 percent secondary tariffs on nations that do business with them, unless significant progress is made in resolving the conflict within a 10–12 day timeframe, moving up an earlier deadline of 50 days.
Toshitaka Tazawa, an analyst at Fujitomi Securities, noted, “Fears that secondary tariffs on countries importing Russian crude will tighten the supply are fueling buying interest.”
The United States has also cautioned China, the largest purchaser of Russian oil, that it could face substantial tariffs if it continues its imports.
Unexpected Inventory Changes
In another development, US crude oil reserves surged by 7.7 million barrels during the week ending July 25, amounting to a total of 426.7 million barrels, as reported by the Energy Information Administration. This increase was driven by lower export levels, while analysts had anticipated a draw of 1.3 million barrels.
On the other hand, gasoline stocks decreased by 2.7 million barrels to 228.4 million barrels, significantly surpassing expectations of a 600,000-barrel decline.
Tazawa from Fujitomi Securities remarked, “The US inventory data showed an unexpected build-up in crude stocks, but the larger-than-forecast drop in gasoline inventories indicates robust demand during the driving season, contributing to a neutral impact on the oil market.”