Middle East crude surges toward $150: Will UAE fuel prices rise soon?

Dubai: Global oil prices rose again on Saturday, reflecting mounting geopolitical pressure on supply flows. Middle East crude led the move with a sharp spike. Murban crude, a key benchmark exported from the UAE, jumped 18% to $146.40 per barrel. That followed a 6% surge a day earlier, when prices hit $131 per barrel.

Globally, Brent crude climbed back above the $100 mark, trading at $112 per barrel, up 3.3%. The US benchmark West Texas Intermediate (WTI) posted similar gains on Saturday, rising into the low-$90s.

The rebound follows a pullback on Friday. WTI fell 2.06%, while Brent declined 1.45%. On Friday, Brent eased toward $109 per barrel. WTI held in the high-$90s. Both retreated from Thursday’s spike, when Brent briefly approached $120.

This price shift did not stem from demand or supply fundamentals. Policy moves drove the change. Washington is pushing to increase available supply. Allies are coordinating efforts to stabilise flows through the Strait of Hormuz. Measures include deploying additional troops to the Middle East to secure key shipping routes.

For people in the GCC, higher crude prices carry direct and indirect effects. Governments benefit from stronger revenues, which can support spending, infrastructure projects, and economic growth.

Since the UAE deregulated fuel prices in 2015, pump rates have followed global market trends rather than fixed local pricing. Each month, the UAE Fuel Price Committee sets prices based on average international crude and refined fuel costs, meaning benchmarks like Murban influence prices only as part of broader movements.

Recent gains, with Murban nearing $146, have increased the likelihood of higher fuel prices, though the final impact depends on global averages before the next monthly revision.