UAE fuel prices face potential November hike as Brent exceeds $110

UAE motorists face the possibility of a second consecutive month of fuel price hikes in November as global Brent crude prices surpassed $110 a barrel and international shipping costs hit record levels. The upcoming price review, conducted by the UAE fuel price committee, follows a sharp 16% increase implemented for October. Global Oil and Freight Pressures On Wednesday, 21 October, Brent crude traded at $110.86 while US West Texas Intermediate (WTI) reached $99.97, both gaining more than 1%. Prices have been bolstered by tightening US oil inventories and geopolitical instability affecting Middle East shipping routes. Data from the American Petroleum Institute (API) indicated continued drawdowns in both crude and petroleum product stocks. Adding to the pressure, Goldman Sachs reported that average oil freight costs have surged from $3 per barrel last year to over $20, with some Middle East routes peaking at $35. These record transport costs, driven by war-risk premiums and vessel fuel expenses, are expected to influence the committee’s calculation for November retail rates. Impact on Local Consumers Current October prices stand at Dh4.40 per litre for Super 98, Dh4.28 for Special 95, and Dh4.21 for E-Plus 91, while diesel is priced at Dh4.80. These rates represent a 70% to 76% increase compared to February levels. For a driver using 240 litres of Special 95 monthly, every 10-fils increase in the upcoming review would add Dh24 to their monthly expenditure. Market Outlook for…