Oil price adjustments mixed

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    Oil companies are implementing mixed movement of prices effective today after three consecutive weeks of increases.

    Global crude are mixed as well due to output shutdowns ahead of a storm in the US Gulf of Mexico, the possibility of supply cuts from Saudi Arabia as well as the end of an oil workers’ strike in Norway.

    According to the Department of Energy, the latest average Manila price per liter of gasoline (RON95) is at P48.65, diesel at P33.93 and kerosene at P36.21.

    Petron, Shell and Seaoil adjusted per liter prices upward by P0.45 of diesel and P0.55 of kerosene but downward by P0.10 for gasoline.

    As of October 6, year-to-date adjustments on fuel prices summed up to a net decrease of P4.32 per liter for gasoline, P10.71 per liter for diesel and P14.19 per liter for kerosene.

    Reuters reported that as of Friday last week, Brent futures settled at $42.85 a barrel while US West Texas Intermediate crude ended at $40.60 a barrel.

    The report noted that the increase was mainly supported by Saudi Arabia’s consideration to reverse the Organization of the Petroleum Exporting Countries’ planned production increase early next year.

    Phil Flynn, an analyst at Price Futures Group, said the potential extension of the production cuts have caused a positive development in the pricing of petroleum products apart from the shutdown of oil rigs in the Gulf Coast in anticipation of Hurricane Delta.

    However, all fuel products could have experienced an upward adjustment if not for the resolution of the oil worker strike in Norway and the failure of US Congress to come up with another economic stimulus deal before the American elections next month. -J.Macapagal