Oil price adjustments mixed, global demand forecast raised

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Oil retailers implemented mixed adjustments in the price of  fuel products after last week’s hike.

Seaoil raised per liter prices by P0.80 on gasoline and P0.60 on diesel but cut the price of kerosene by P0.10.

Clean Fuel, PTT, Phoenix Petroleum and Jetti Fuel adjusted per liter prices upward by P0.80 of gasoline and diesel by P0.60.

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Today’s adjustments were mainly attributed to the International Energy Agency’s (IEA) decision to raise its forecast on global oil demand this year by 200,000 barrels per day (bpd) to a record 102 million bpd.

Data from the Department of Energy (DOE) as of May 16 showed latest average Manila price per liter of gasoline (RON91) is at P58, diesel at P52.95 and kerosene at P68.15.

DOE data also showed year-to-date adjustments stood at a total net decrease of P5.65 per liter for diesel and P6.30 per liter for kerosene and a net increase of P4.20 per liter for gasoline.

Reuters reported that as of Thursday last week, Brent futures settled at $75.86 a barrel while US West Texas Intermediate crude ended at $71.86 per barrel.

Analysts also cited other factors  that affected this week’s mixed price adjustments. One of them is lower than expected industrial output and retail sales growth of China for April which  signifies that the world’s biggest importer of crude slowed down its demand.

However, experts said the US’ announcement of stronger dollar performance  can  temper crude prices as the move would make fuel more expensive for holders of other currencies. -Jed Macapagal

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