Oil prices up anew

Local oil firms raised prices for gasoline for the third time, as well as diesel and kerosene for the second time in the last three weeks. AFP FILE PHOTO

Pump prices of petroleum products on Tuesday went up the third time for gasoline and second time for diesel and kerosene in the last three weeks.

Local oil firms raised prices as early as midnight of Tuesday, with that of diesel rising by 75 centavos a liter and of gasoline by 55 centavos a liter.

As of press time Monday, companies that gave notice of price increases included Pilipinas Shell Petroleum Corp., Flying V, Eastern Petroleum Corp., Phoenix Petroleum Philippines Inc., and Seaoil Philippines Inc.

Shell, Flying V, and Seaoil also raised kerosene prices by 85 centavos a liter.

The latest price changes bring prices of diesel in Metro Manila to the range of P28.05 to P33.26 a liter at the pump. Gasoline prices will now be in the range of P38.85 to P51 a liter.

Kerosene prices will be at P32.95 to P42.08 a liter.

Monitoring by the Department of Energy showed that crude prices increased on statements that major oil-producing countries were in near agreement to extend supply cuts into 2018.

Melita V. Obillo, office-in-charge director of the DOE’s Oil Industry Management Bureau, said one of the factors affecting the price changes was the decision of the Organization of Petroleum Exporting Countries (OPEC) to extend by nine months an agreement on reduced production, which will now last until March 2018.

“Summer is approaching in the United States, which means demand for gasoline is rising. Gasoline prices may be on the uptrend in the coming two or three months, but we cannot say so definitely as the actual price movements will depend on the markets’ reactions,” Obillo said.

“Maybe demand will rise further or the US will take steps like raising output of shale oil (to address rising demand),” she added.

Monitoring by the DOE shows that market analysts believe that US output could still threaten to disrupt the market balance unless OPEC cuts were deepened.

Fuel production in the US reportedly soared by 10 percent since mid-2016 to 9.3 million barrels per day (bpd).

Further, the DOE cited reports that say output from the North Sea, which generally seen in terminal decline, is expected to jump by a net 400,000 bpd in the next two years as producers improve efficiency. JE