Petrol prices in UAE: Will fuel rates drop in March?
Petrol prices are expected to drop in March 2025 as global oil prices traded on the lower side in February.
Global oil prices fell earlier this month after the oil-producing group Organisation of the Petroleum Exporting Countries and its allies (Opec+) confirmed their plan to gradually increase oil production starting April 1, 2025.
Brent averaged around $75 a barrel in February compared to $77.55 in the previous month.
In the UAE, Super 98 has been priced at Dh2.74 per litre, Special 95 at Dh2.63 and E-Plus at Dh2.55.
Additionally, the energy market faces further pressure due to US crude oil inventories fluctuations. Recent data indicated increased reserves, reinforcing the perception of a potential short-term oversupply. This situation has led traders to reduce their long positions in the futures market, contributing to the acceleration of WTI's price decline.
In this volatile environment, investors will remain attentive to Opec+'s upcoming moves and global economic indicators that may influence energy demand. The evolution of crude oil prices in the coming sessions will largely depend on the market's perception of the balance between supply and demand.
Analysts also point out that macroeconomic factors, such as the US Federal Reserve's monetary policy and interest rate expectations, have influenced the decline in oil prices. A stronger dollar makes oil more expensive for international buyers, which tends to reduce demand and negatively affect prices.
Antonio Di Giacomo, senior market analyst at XS.com, said the crude price drop reflected investor uncertainty and concern over the imminent increase in Opec+ production. 'Although this decision had already been anticipated, its impact on the market has been significant, exacerbated by factors such as the dollar's strength and rising US inventories,' he said.
Vijay Valecha, chief investment officer of Century Financial, said hedge funds are turning less optimistic on crude oil's prospects, trimming net-bullish bets in a further sign of market softening.
'Oil has sold off in recent weeks amid a host of drivers, with traders concerned that US tariffs and talks on the war in Ukraine could impact market dynamics. In addition, Iraqi exports from its semi-autonomous Kurdistan region may resume, although Opec+ may defer planned output hikes,' added Valecha.
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