OIL companies are implementing big-time price hikes on sentiments of policy shits in the US and output cuts.
Caltex and Seaoil raised per liter prices of gasoline by P1.50, diesel by P2.10 and kerosene by P1.20.
Clean Fuel adjusted prices upward by P1.50 per liter on gasoline and P2.10 per liter on diesel.
Today’s price increase is attributed to the effects of expected policy shifts in the US under President Donald Trump as well as the temporary output cut made by drillers in the Gulf of Mexico in preparation for Hurricane Rafael last week.
Data from the Department of Energy (DOE) as of November 5 showed Manila price per liter of gasoline (RON91) stood at P57.50, diesel at P55.15 and kerosene at P71.66. Year-to-date adjustments as of the same date stood at a total net increase of P8.65 per liter for gasoline, P7.30 per liter for diesel but a net decrease of P2.60 per liter for kerosene.
Reuters reported that as of Friday last week, US West Texas Intermediate futures settled at $70.35 per barrel while Brent crude futures ended at $73.87 a barrel.
The report said global crude prices experienced support due to expectations that Trump will tighten sanctions on Iran and Venezuela.
Another development that pushed global crude prices up is the US Federal Reserve’s decision to cut interest rates by a quarter of a percentage point at the close of its policy meeting last week. Interest rate cuts usually increase economic activities and energy demand.
The increase in global crude prices could have been much higher if not for the US dollar’s near two-week high performance last week after Trump’s victory.
A strong US dollar makes oil more expensive for other currency holders and tends to pull down prices.
Another factor thattempered a possible higher increase of fuel prices this week is the reported 9-percent decline in crude oil imports in China for October.
This reflects the sixth consecutive month of a year-on-year decline in fuel purchases of the world’s biggest petroleum importer.
