Pump prices rise by up to P1.60 per liter

LOCAL oil firms increased petroleum prices today (Tuesday) as global stocks fell amid bullishness on the US economy, which could spur demand for fuel, and on speculation falling oil prices may be bottoming out.

Petron, Shell and Seaoil announced hikes for gasoline of P1.60 per liter, diesel of P1.25 per liter and kerosene of P1.15 per liter effective 6 a.m. Tuesday.

Phoenix Petroleum, PTT Philippines and Eastern Petroleum also raised gasoline prices by P1.60 per liter and diesel by P1.25 per liter at 6 a.m. today. They do not sell kerosene.

Last week, oil prices rose for several days after the International Energy Agency reported production declines in the United States, whose shale oil industry drove prices down starting in 2014, as well as other nonmembers of the Organization of Petroleum Exporting Countries (OPEC).

There were also reports that Iran’s output was not expected to greatly boost global market supply, or at least not as much as initially thought.

Trading in the early part of the week was encouraged by news of sustained lobbying by smaller OPEC members for a possible output freeze as well as stronger than expected refined product demand data from the EIA.

Since March 4, both front-month contracts for the US crude benchmark (WTI) and the global crude benchmark (Brent) have settled above $35 per barrel, which analysts said was a psychological level that could signal whether the price decline of the past year or so will continue or has hit bottom.

Prior to that, crude prices had risen after China raised expectations for higher domestic demand for fuel.

According to the Oil Monitor Report of the Philippines’ Department of Energy, the rally was also fueled by pledges from the OPEC to work with other major oil producers to freeze production at January levels. Riza T. Olchondra