The Middle East Investment Summit 2019 is set to take off on April 23 at Jumeirah Emirates Towers in Dubai. The two-day event will mark the attendance of global leaders and influential investors helping to guide Middle Eastern fund managers and investors, keeping technology, selection, and strategy in view. From infrastructure to fintech, important discussions in the summit will span a range of markets, including of course, oil and gas. There have been speculations about the reduction in petrol and diesel prices in the new year due to various reasons. It would be interesting to see how the UAE summit will impact the prices this year.
Let’s Look at how Petrol and Other Fuel Prices are Faring across the World
If we look at the current forecasts, fuel prices in prominent countries such as the U.S., U.K., India, and South Africa are predicted to see declines in 2019.
While spring’s new merchandise is expected to touch a slightly higher price in the U.S., consumers are forecast to enjoy bargain-basement gas prices for now. Spring usually witnesses more number of motorists and car drivers, which creates more demand for gas than in winter. Moreover, the production cost of gasoline is higher during the warmer months compared to winter blends.
Petrol consumers in South Africa are anticipated to gain some relief after being pressed down by significant increases last year. Even illuminating paraffin prices are foreseen to drop in 2019. America’s increasing aspiration to become a leading net oil exporter that could suppress the influence of OPEC nations on petroleum prices is projected to lead to a decrease in fuel prices, not only in South Africa but also other countries.
Sagging international oil prices are also said to have taken effect on petrol prices in Croatia. The beginning of 2019 has already marked a reduction in the prices.
Since the country’s large proportion of petrol and diesel demand is met by imports, the INR-USD exchange rate and international benchmark fuel prices could be crucial for India’s retail selling prices. With that being said, fuel prices have already tumbled at the start of the new year.
The Middle East will Fight Hard against the U.S. Eying its Dominance in Oil Export
There is no doubt that the Middle East holds immense potential to raise capital annually with its abundant in-house source of raw materials, mainly oil and gas. However, Saudi exports are currently taking a hit from U.S. light crude shipments to Asia. In addition, major Middle East oil exporters are dealing with the challenge that U.S. shale poses with lowered prices due to soaring production.
Even the OPEC+ structure is resting on a weak support as Russia’s energy minister sees the idea of formalizing a permanent governance architecture too risky, owing to antitrust risks from the U.S. government and increase in red tape.
Not that the world is waiting on the Middle East Summit 2019 to change the oil and gas price scenario for this year, but it may have some impact, given that it would definitely influence investment in the region. The strength of the pound against the dollar, U.S. fracking, political tensions in the Middle East, and the supply-demand market level could be key points of interest for oil and gas investors.
In this regard, the Middle East Summit 2019 is expected to openly highlight the aforementioned factors besides result-oriented ways in which the Middle East could handle the U.S. storm undercutting its crude exports. At the most, it could have a stabilizing effect on the ‘already reducing petrol prices’ scenario witnessed globally.
May 2, 2019
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