Another Round of Price Hikes for Gasoline, Diesel

The price hikes have been in effect since 12:01 a.m. (GMT)today.

The latest adjustment pushed the year-to-date net increase of gasoline to P3.67 ($5.6) per liter.

The net rollback for diesel turned around to an 11-centavo net hike following the adjustment; while those of kerosene ended with a 15-centavo net decrease.

In its latest report, the Energy department said escalating concerns over Yemen continued to buoy fuel prices in the world market.

A tribal group - formerly al Qaeda militants - took over a major terminal, which exports an average of 120,000 to 140,000 barrels of crude per day.

The market was also affected by the stronger demand forecast of the International Energy Agency, which noted “stronger than expected demand response” from lower oil prices.

There were also speculations on a possible cut in the output of Organization of the Petroleum Exporting Countries (OPEC).

“Talks between OPEC and other major producers triggered speculation about deals to cut production, though most analysts said an agreement was unlikely,” the report read.

In Asia, Platts noted that the gasoline market continued to pick up amid increased spot buying interest in anticipation of the planned refinery turnarounds in the region.

“Asian gasoline sentiment is likely to get a boost as stocks in Singapore - the region’s largest trading hub - fall sharply, amid healthy prompt regional demand,” the report said, noting that decline in Singapore’s stocks was due to significantly lower imports.

The diesel market continued to lose steam due to higher supplies from India and North Asia for May as refineries complete maintenance.

International prices of diesel and gasoline continued to shoot up in the last trading week.

Latest data from the Energy department showed that current diesel prices range between P27.70 ($42.24) to P31 ($47.27), while gasoline prices hover between P38.95 ($59.4) and P44.55 ($67.94).

Source: BusinessWorld Online

Oil Prices Hover Close to a Four-Month High
Oil prices edged closer to a four-month high in afternoon trading, as a slowdown in US production and escalating conflict in Yemen took their toll on supply.

Brent crude rose to $65.37 per barrel in mid-afternoon trading, while WTI, the US benchmark, rose 0.77 per cent to $57.59. It’s no coincidence the rise in prices comes after the weekly count of functioning oil rigs in the US fell 31 units to 703 on Friday. That’s down from a peak of 1,609 in October.

The rise in prices coincides with reporting week for some of the UK’s largest oil companies: over the next few days Shell, BP and Exxon Mobil are due to report muted results. Indeed, some analysts have predicted falls in profit of as much as 60 per cent.

Although the recent fall in oil prices puts UK oil giants at risk of takeover, today the Conservatives were adamant they would protect BP from a takeover. BP’s share price edged down 0.94 per cent to 473.9p sources at Number 10 told the FT  it would be “sceptical” of any takeover attempt.

Source: City A.M.

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