Middle East Crude Surges Toward $150 Amid Geopolitical Tensions

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DUBAI: Regional oil prices rose sharply on Saturday, with Middle East crude benchmarks approaching the $150 per barrel mark as geopolitical tensions continue to disrupt global supply flows.

Murban crude, the primary export grade for the UAE, jumped 18 per cent to $146.40 per barrel during Saturday’s trading session. The spike followed a 6 per cent surge a day earlier, reflecting what analysts describe as a ‘Hormuz risk premium’ being priced into Gulf oil. While global benchmarks also rose, with Brent crude climbing back above $112 per barrel, regional grades have outperformed due to their proximity to ongoing maritime disruptions.

The price shift did not stem from supply or demand fundamentals but was driven by policy moves and security concerns. Washington is currently pushing to increase available supply, while international allies coordinate efforts to stabilise flows through the Strait of Hormuz, including the deployment of additional troops to secure key shipping routes.

The surge has raised questions among motorists regarding the upcoming monthly fuel price review. UAE petrol and diesel prices are adjusted at the end of each month by the UAE Fuel Price Committee, based on average global oil prices and refined fuel costs from the preceding period.

While prices for March were set at Dh2.59 for Super 98 and Dh2.48 for Special 95, the significant volatility in the latter half of the month suggests a potential upward adjustment for April. Economists warn that sustained high prices could increase inflationary pressure across the country, leading to higher transport and manufacturing costs.

"UAE fuel prices are reviewed monthly and are based on average global oil prices," a committee official stated, noting that final pump prices may differ if global markets shift before the official announcement. For now, the stronger crude revenues are expected to support government spending and infrastructure projects, even as consumers brace for potential increases at the pump.