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Fuel prices to fall in December

Fuel will be cheaper in the UAE in December, according to the new prices announced by the Ministry

Abu Dhabi: Fuel will be cheaper in the UAE in December, according to the new prices announced by the Ministry of Energy on Wednesday.

Super 98 will cost Dh1.80 a litre in December, down from Dh1.90 in November. The per litre price of  Special 95 will be Dh1.69, down from Dh1.79 last month. Price of E Plus-91 will be Dh1.62, reduced from Dh1.72 in November.

Price of Diesel has gone down from Dh1.91 in November to Dh1.81 in December.

Fuel prices for December

The new fuel prices are announced as Opec member countries discuss on output cuts in an important meeting in Vienna on Wednesday to prop up oil prices.

Global oil prices are trading higher in anticipation of a deal.

Brent, the global benchmark was trading at $49.03 per barrel, up by 5.50 per cent at 1:50 pm UAE time.

US crude West Texas Intermediate was up by 5.11 per cent to trade at 47.54 per barrel.

Analysts said some kind of a deal would be struck in Vienna specially cutting output in the range of 0.8 to 1.1 million barrels per day as failure would be counterproductive for everyone.

“I see a short term pop above $50, but at this stage I do not see Brent break above $54 per barrel. Once the dust settles on the deal, the market may begin to ask the questions about compliance and a wait and see approach may be adopted during which time the price may drift lower, but not below $45,” Ole Hansen, head of commodity strategy at Saxo Bank told Gulf News.

“Failure to agree a deal, which primarily could be driven by Iran's rejection to join the cut, should remove some of the credibility the cartel has tried to build up since Algiers, and the market response could be a renewed sell-off towards the $40 area.”

The fuel prices are calculated based on the average global prices for diesel and petrol with the addition of operating costs and profit margins of the distributing companies in the UAE.