The United Arab Emirates has set June fuel prices that reflect the country’s first month as an independent oil producer following its departure from Opec on May 1, and the pricing moves are being watched closely in Texas energy circles for what they signal about the new competitive landscape.
Super 98 petrol will cost Dh3.95 per litre in June, up from Dh3.66 in May. Special 95 rises to Dh3.83 from Dh3.55, and E-91 Plus increases to Dh3.76 from Dh3.48. Diesel, by contrast, dropped to Dh4.33 from Dh4.69. The divergent movements in petrol and diesel reflect the complex dynamics now at play as the UAE charts an independent production course.
After leaving Opec, the UAE could eventually increase output by up to 30 percent above its previous quota-constrained levels, depending on how quickly new capacity comes online. That additional supply, when it arrives, could put downward pressure on the global crude prices that underpin Texas drilling economics — or it could be absorbed by rising Asian demand, leaving prices largely unchanged.
Texas energy economists note that the UAE’s move represents the most significant shift in global oil governance in decades. For Permian Basin producers, the key question is whether the additional barrels will come quickly enough to meaningfully offset the supply disruptions currently supporting elevated prices around $94 per barrel for Brent crude.
In the near term, the petrol price increases in the UAE — three consecutive months of rises — suggest that refined product markets remain tight even as crude supply questions persist. For Gulf Coast refiners processing Texas crude, the global demand picture remains favourable, with export premiums holding steady as Asian and European buyers compete for available cargoes.
Source: Khaleej Times | Texan Weekly
