AP FILE PHOTO
MANILA, Philippines — Oil prices are increasing for the second straight week despite persistent concerns over global supply glut as short-term shortages in gasoline and gasoil/diesel cargoes hit the Asian market.
Dominant oil firm Petron has announced in an advisory that it will raise gasoline prices by 35 centavos per liter, diesel by 75 centavos per liter, and kerosene by 80 centavos per liter by 6 a.m. Tuesday, November 10.
Seaoil, one of the larger of minor oil players in the country, has also announced it will raise gasoline prices by 25 centavos per liter, diesel by 80 centavos per liter, and kerosene by 80 centavos per liter at the same time as the major oil players.
Phoenix Petroleum and PTT Philippines said separately, on Monday, they would increase gasoline prices by 35 centavos per liter and diesel by 75 centavos per liter by 6 a.m. Tuesday.
Excluding price changes this week, gasoline prices have so far had a net increase of P0.61 per liter while diesel remains at net decrease of P3.44 per liter from January. LPG has had a net decrease of P5.90 per kilogram.
Last week, the Department of Energy (DOE) reported price spikes due to shortages in gasoline cargoes. But industry think tank Platts said ample supply in the second half of November would likely weigh on gasoline products soon. Asian gasoil/diesel market remained supported by thin supply. Platts noted of refinery turnaround in Malaysia, less supply from China, Taiwan and Korea, which may continue to cause tight supply until next week.
Also last week, the DOE reported that oil firms would increase gasoline and kerosene prices for the week following weeks of decreases, as well as LPG prices for the month of November.
This was mostly attributed to oil rig counter Baker Hughes Inc. reporting further shrinking in the number of oil rigs in the U.S. The U.S. shale oil boom is largely credited for the oil price crash in 2014 and the lingering weakness in demand versus supply this year.
With U.S. oil rig count dropping by 16 to 578, as per Baker Hughes, a little speculative trading pulled up oil prices for the short term, analysts said. Compared to the peak of 1,609 oil rigs in October 2014,
the year on year count as of the end of October 2015 was down 64 percent, according to estimates.
But some analysts believe OPEC members are inclined to hold production steady at their meeting before yearend as the gap between supply and demand for oil closes.
On household LPG, the brands Solane, Gasul, Petronas became more expensive by P2.95 per kilogram from 6 a.m. Nov. 2.
Meanwhile, Liquigaz will have raised prices by P2.50 per kilogram from 12:01 a.m. on Nov. 10 (Tuesday) and ECGas by P2.90 per kilogram from 6 a.m., also Nov. 10.
The price of oil has continued with its see-saw movements from early 2015, but most oil companies are not complaining. Most of them agree that prices are more “stable” compared to the steep declines in the second half of 2014. With small increments of decline and a price hike now and then, oil companies are expected to recover financially from last year’s experience of having to sell at a loss — by the second half of the year, they have had to sell at low prices even if their inventories were bought at higher prices earlier in the year. SFM