Fuel Prices Expected to Drop as UAE Calls for Higher Production

Fuel Prices Expected to Drop as UAE Calls for Higher Production

After consecutive weeks of fuel price increases worldwide, it seems that consumers will now see a price drop.

Fuel Prices Drop as UAE Calls for Higher Production

This is because of the open support of the United Arab Emirates (UAE) on increasing fuel production. In fact, after this statement released by the OPEC (Organization of the Petroleum Exporting Countries) member, international benchmark Brent Crude saw a 17% drop.

The drop is very crucial and timely as the fuel price hike in the country is on its tenth consecutive week. Although the price drop hasn’t been realized in the Philippines yet, the global price drop should have an effect according to experts.

Recently, the International Energy Agency (IEA) also agreed to release 60 million barrels of oil from strategic national reserves. However, this is still not enough to catch up with the recent price increases worldwide. This is why it matters that UAE, one of the biggest oil players in the world, has expressed its support to increase production. Increasing the production would eventually lessen the prices, since the demand will be satisfied.

UAE ambassador to the United States Yousuf Al Otaiba in support has stated that, “We favour production increases and will be encouraging Opec to consider higher production levels.”

featured image courtesy of Shell Pilipinas

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