Oil prices up for 2nd week

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    Oil companies are raising prices anew on projected higher global demand and tightening of supplies due to output cuts by oil producing countries.

    According to the Department of Energy, the latest average Manila price per liter of gasoline (RON95) is at P54.07, diesel at P38.50 and kerosene at P43.71.

    Petron, Caltex, Shell and Seaoil adjusted per liter prices upward by P0.75 of gasoline, P1.25 of diesel and P1.10 of kerosene.

    Meanwhile, PTT increased gasoline by P0.75 per liter and diesel by P1.25 per liter.

    As of February 9, 2021, year-to-date adjustments on fuel prices summed up to a net increase of P3.25 per liter for gasoline, P2.65 per liter for diesel and P2.25 per liter for kerosene.

    Reuters reported that as of Friday last week, brent crude settled at $62.43 a barrel, up by 2.1 percent while US oil ended at $59.47 a barrel, also equivalent to an increase of 2.1 percent.

    The report noted that US President Joe Biden continues to push for the approval of a $1.9 trillion coronavirus relief plan to support economic growth and unemployment.

    Likewise, the Organization of the Petroleum Exporting Countries and its allied producers also held on to production cuts, as it cut down its projected global oil demand for the year by 110,000 barrels per day (bpd) to 5.79 million bpd.

    However, analysts warned that the increase in the global price of crude oil may be limited if the US decides to improve production especially since the country has been increasing the number of active oil and natural gas rigs in operation for the last 12 weeks. – Jed Macapagal