Latest news with #Dahrieh
IOL News
14-05-2025
- Business
- IOL News
Fuel price decrease still possible for June, despite recent uptick in oil prices
Another fuel price cut is looking likely for June. International oil prices have stabilised following a surge early this week, however modest fuel price reductions are still looking likely for June. The latest data from the Central Energy Fund is pointing to possible price cuts of around 40 cents for petrol and 75 cents for diesel. However, if oil prices remain at current levels, this could be eroded by month-end, possibly to around 15 cents for petrol and 40 cents for diesel. On Wednesday, Brent Crude oil prices hovered near two-week highs, at around US $66 per barrel (R1,207). This remains slightly below the $66.40 average for the previous review period, which determined the current fuel price structure. While oil prices are having a negligible effect on the fuel price outlook for June, the rand is coming to the rescue, trading at an average of R18.38 to the US dollar this month so far, which is significantly stronger than the previous review period's average of R18.83. Why have oil prices risen? Oil was trading around the $61 mark earlier in May, but started rising late last week on optimism fuelled by the easing tariff tensions between China and the US. Although the 90-day trade truce is seen as positive, its expiration could bring renewed market instability, warns Joseph Dahrieh, Managing Principal at Tickmill. However, any further oil price hikes could be mitigated by higher supply levels, with oil cartel OPEC+ indicating that it is set to maintain its elevated output levels. 'Geopolitical tensions could also affect the market as traders monitor the developments in talks in various regions, including Iran, where a positive outcome could see additional oil volumes hitting the market,' Dahrieh added. Stable year for fuel prices South Africans currently pay R21.29 for a litre of 93 Unleaded petrol in Gauteng, with 95 ULP retailing at R21.40 inland and R20.60 at the coast. This follows price reductions of 22 cents per litre for 95 ULP and 21 cents for 93 UPL at the beginning of the month, while diesel fell by between 41 cents (50ppm) and 42 cents (500ppm). This followed petrol price cuts of between 58 cents and 72 cents in April and seven cents in March. 93 ULP is currently just 17 cents more expensive than it was in January. IOL
Gulf Today
04-04-2025
- Business
- Gulf Today
Opec+ unexpectedly speeds up oil output hikes, oil drops
Inayat-ur-Rahman, Business Editor / Reuters Eight Opec+ countries unexpectedly agreed to advance their plan to phase out oil output cuts by increasing output by 411,000 barrels per day in May, a decision that prompted oil prices to extend earlier sharp losses. Oil, which was already down over 4% on US President Donald Trump's announcement of tariffs on trading partners, extended declines after Opec updated its plans in a statement, with Brent crude dropping over 6% to below $70 a barrel. Joseph Dahrieh, Managing Principal at Tickmill told Gulf Today that crude oil futures have reversed their gains from early March, with prices falling after US President Trump's tariff announcements, stoking concerns over potential global trade tensions and its impact on oil demand. 'This pullback reflects market uncertainty and could weigh on global crude prices in the near term, particularly if trade tensions hinder economic growth in key oil-consuming regions. The outlook suggests caution, with volatility likely to increase as markets digest the full implications of the tariffs. Longer-dated futures contracts also saw declines in prices, indicating expectations of long-term risks for crude prices.' Dahrieh added. Meanwhile, Opec+'s decision to increase its oil output adds further bearish pressure. The organisation is aiming to supply up to 411,000 barrels per day in May, which is significantly higher than previously planned. The excess supply could add to the pressure on the oil market, in particular if demand is affected by the changes in US trade policy, leaving the market without support.' Dahrieh concluded. Eight members of Opec+, which includes the organisation of the Petroleum Exporting Countries and allies led by Russia, had been scheduled to raise output by 135,000 barrels per day in May as part of a plan to gradually unwind their most recent layer of output cuts. But after a meeting of the eight countries held online on Thursday, the group announced it would boost output by 411,000 bpd in May. Opec cited 'continuing healthy market fundamentals and the positive market outlook.' 'This comprises the increment originally planned for May in addition to two monthly increments,' Opec said in a statement referring to the volume. 'The gradual increases may be paused or reversed subject to evolving market conditions.' The increase will reduce fears arising from any disruption to Iranian supply as Trump restores maximum pressure on Tehran, also an Opec member. The US President, who has called on Opec to lower prices since starting his second term, may visit Saudi Arabia as soon as next month. The May hike is the next increment of a plan agreed by Russia, Saudi Arabia, UAE, Kuwait, Iraq, Algeria, Kazakhstan and Oman to gradually unwind their most recent output cut of 2.2 million bpd, which came into effect this month. Opec+ also has 3.65 million bpd of other output cuts in place until the end of next year to support the market. The total of 5.85 million bpd is equal to about 5.7% of global supply. The decision on Thursday partly reflects Opec+ leaders' wish to improve compliance with production quotas, analysts said. 'Opec+ focus is on compliance and this decision forces the laggards to step up compliance,' said Amrita Sen, co-founder of Energy Aspects. Record output in Kazakhstan has angered several other members of the group, including top producer Saudi Arabia, sources have told Reuters. Opec+ is urging the Central Asian country, among other members, to make further cuts to compensate for excess production. Kazakhstan has been producing oil well above the targets agreed with Opec+ in recent months. Production in Kazakhstan could drop this month and exports could decline after Russia ordered to shut some export capacity on the CPC pipeline, the main evacuation route for oil in Kazakhstan produced by oil majors such as US Chevron and Exxon Mobil. The eight Opec+ countries will meet on May 5 to decide on June output, Opec's statement said. Eight members of Opec+, which includes the organisation of the Petroleum Exporting Countries and allies led by Russia, had been scheduled to raise output by 135,000 barrels per day in May as part of a plan to gradually unwind their most recent layer of output cuts.
Khaleej Times
28-03-2025
- Business
- Khaleej Times
UAE petrol prices: Will fuel rates drop in April?
Petrol prices in the UAE are likely to drop for the month of April as global prices stayed on the lower side in March. Brent price averaged around $70.93 in March compared to $75 in February. Petrol prices in the UAE are expected to be revised down when new prices are announced for the next month in the coming days. The UAE government usually announces revised rates on the last day of every month. In March, Super 98 was priced at Dh2.73 per litre, Special 95 at Dh2.61 and E-Plus at Dh2.54. Globally, Brent was trading at $74.11 per barrel and WTI at $70.01 a barrel in early trade on Friday. Joseph Dahrieh, managing principal at Tickmill, said crude oil might see increased volatility as market participants navigate the uncertainty surrounding recent global developments. 'The market reacted to the announcement of US tariffs on countries buying Venezuelan oil and to the mounting concerns over the broader economic impact of escalating trade tensions, which threaten to weaken global demand. 'In this regard, the uncertainty surrounding the potential reduction in Venezuelan oil exports could tighten supply in the short term to a certain extent. Similarly, sanctions on Iranian oil could contribute to a potentially tighter market. However, economic slowdown fears due to tariff-induced costs could continue to pressure crude prices,' said Dahrieh. Meanwhile, changes in Opec+ crude production could affect the market. The organisation is expected to increase oil output, which could further weigh on prices. However, the group's efforts to address overproduction from certain members could provide a floor for prices. After weeks of downward pressure, oil prices rebounded to a certain extent over the past two weeks. The recovery marked a notable shift in market sentiment, with both benchmarks recording weekly gains. George Pavel, general manager at Middle East, said escalating tensions in the region have supported oil prices. 'Recent US military strikes against Houthi rebels in the Red Sea and ongoing Israeli operations in Gaza have heightened concerns about the region. However, developments in the Russia-Ukraine conflict could act as a counterbalance if peace talks succeed, creating more volatility,' he said, adding that in addition to the market's volatility, the US' announcement of new tariffs on Venezuelan oil buyers, set to take effect on April 2, 2025, has created ripples through the global oil markets. 'This policy shift, coupled with existing sanctions on Russian and Iranian oil producers, has raised concerns among traders,' he added. Month Super 98 Special 95 E-Plus 91 Jan-24 2.82 2.71 2.64 February 2.88 2.76 2.69 March 3.03 2.92 2.85 April 3.15 3.03 2.96 May 3.34 3.22 3.15 June 3.14 3.02 2.95 July 2.99 2.88 2.8 August 3.05 2.93 2.86 September 2.9 2.78 2.71 October 2.66 2.54 2.47 November 2.74 2.63 2.55 December 2.61 2.5 2.43 Jan-25 2.61 2.5 2.43 February 2.74 2.63 2.55 March 2.73 2.61 2.54
