OIL price adjustments that take effect today are mixed after last week’s increases.
Seaoil and Caltex increased per liter prices of gasoline by P0.90 but reduced per liter prices of diesel by P0.20 and kerosene by P0.40.
Clean Fuel and Jetti adjusted prices upward by P0.90 per liter on gasoline and downward by P0.20 per liter on diesel.
Today’s price movements were mainly caused by the effects of the ongoing geopolitical tensions in the Middle East paired with anticipation for the results of the Organization of the Petroleum Exporting Countries (OPEC) and its allies’ meeting this week.
Data from the Department of Energy (DOE) as of November 28 showed Manila price per liter of gasoline (RON91) stood at P57, diesel at P57.60 and kerosene at P72.15.
DOE data also showed year-to-date adjustments as of November 28, stood at a total net increase of P10.45 per liter for gasoline and P9.75 per liter for diesel but a net decrease of P1.50 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude settled at $72.94 a barrel as US West Texas Intermediate crude futures ended at $68 per barrel.
The report said a ceasefire between Israel and Hezbollah that took effect last Wednesday has reduced oil’s risk premium which pulled down prices despite accusations of violations by both sides.
Analysts said the Middle East conflict has not disrupted supply.
The International Energy Agency noted the possibility of more than 1 million barrels per day of excess supply equivalent to more than 1 percent of global output. OPEC and allies including Russia will meet by December 5 to decide whether or not to further extend its production cuts.
