AFTER two consecutive weeks of decline, local gasoline prices have recovered as global prices ended higher last week due to the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to implement new record output cuts.
According to the Department of Energy (DOE), the latest average Manila price per liter of gasoline (RON95) is at P37.52, diesel at P27.53 and kerosene at P27.07.
Shell and Seaoil adjusted the per liter prices of gasoline upward by P0.75 but decreased the costs of diesel by P0.10 and kerosene by P0.60.
Phoenix and PTT implemented an increase of P0.75 per liter for gasoline but roll backed diesel by P0.10 per liter.
The DOE said as of April 28, year-to-date adjustments stood at net decreases of P15.27 per liter for gasoline, P16.89 per liter for diesel and P21.90 per liter for kerosene.
Reuters reported that as of Friday last week, US West Texas Intermediate crude ended 5 percent higher at $19.78.
The report said the recovery was caused by OPEC, Russia and other producers’ agreement to cut output by 9.7 million barrels per day (bpd) starting May 1.
It added that prices were also supported by the relaxation of lockdowns in several countries and regions including China’s central province of Hubei where COVID-19 was first detected.
“Global petroleum stock builds likely peaked in April as oil demand contracted by nearly 25 million bpd year-over-year… Now, countries are emerging from lockdown, boosting demand just when OPEC+ cuts are kicking in and producers elsewhere are cutting output,” a Bank of America Global Research report also claimed.
The US Energy Information Administration’s statement last week that crude inventories rose only by 9 million barrels which is less than the 10.6 million-barrel rise that were earlier forecasted, helped in the improvement of prices.
Despite the optimistic report, some analysts still doubt
the largest ever agreed oil production cut will be enough as demand is unlikely to recover quickly.
