The UAE Fuel Price Committee on Wednesday reduced fuel retail prices for February 2019 for the fourth consecutive month.
The committee reduced Super 98 and Super 95 prices by five fils per litre. From February 1, 2019, Super 98 will cost Dh1.95 a litre while Super 95 will cost Dh1.84 a litre. Diesel price has been reduced from Dh2.30 to Dh2.28.
The UAE's Ministry of Energy removed subsidies and deregulated fuel prices in the country from August 1, 2015. Since then, the price has been aligned with international crude prices.
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The February price reduction is in line with the decline in global oil prices amidst slower global economy resulting in lower demand for oil prices. The Brent price has fallen 27.6 per cent from $85 per barrel in October 2018 to $61.50 on January 30. However, Brent has been on the upward curve since the start of the year after Opec group decided to cut output in December 2018. Brent has risen over 14 per cent year-to-date from $53.8 on January 3, 2019 to $61.5 on January 30.
Edward Bell, commodity analyst at Emirates NBD, said Opec's production cuts are the primary factor that will contribute to tighter crude markets this year.
"The cuts took effect at the start of January but market estimates on how much producers have actually cut won't be available until the end of the month. Opec producers are meant to cut a total of 812,000 barrels a day, the bulk of which will be accounted for by Saudi Arabia," Bell said.
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