Oil Products Price Increase Seen This Week — Industry Sources

(PNA) — Oil product prices are expected to increase this week, according to industry sources.

”Local pump prices are expected to rise in the range of Php 2.00 per liter (next week). This will be the first major price hike for the year,” it said.

The impending hike is mainly due to higher rates from Asian benchmark Dubai Crude, which increased by USD 7.50 per barrel versus last week.

With the Dubai Crude increase, Mean of Platts Singapore (MOPS) gasoline pricing per barrel went up by USD 8.50, while diesel per barrel increased by USD 6.00.

For February, gasoline per barrel nears the average of USD 66, which is higher, than January’s average per barrel at USD 57. It was relatively affected by strikes of American workers in oil refineries.

On the other hand, a barrel of diesel noted an average increase of USD 6 last week.

The diesel hike was brought about by lower stocks in Japan and demand from Asian countries ahead of scheduled maintenance in several refineries.

Since the start of the oil price drop during the 2nd half of 2014 up to the first week of February 2015, gasoline and diesel prices per liter have decreased between Php 18-19 in the Philippines.

For this year alone, a liter of gasoline decreased P 3.60 and diesel per liter fell by Php 4.

According to the Department of Energy’s (DOE’s) oil monitor as of February 5, gasoline per liter is sold between Php 33.40-37.60, while diesel per liter is presently sold between Php 23.70-28.74.

Meanwhile, the Dubai Crude hike was caused by weak U.S. economic data and some international oil majors deciding to cut capital expenditures this year.

It hints that the expenditure cut will limit crude oil production, which is presently at an oversupply.

Both shale and crude oil producers apart from the Organization of Petroleum Exporting Countries (OPEC) were attributed for the oil production boom.

Overall, the Dubai crude will average USD 52 per barrel this February, significantly higher than the January average of USD 45.50 per barrel. It cites a 14 percent increase.

Mean of Platts Singapore (MOPS) is the average of a set from Singapore-based oil product price assessments published by Platts. It is a global energy, petrochemicals, metals and agriculture information provider.

Singapore is the common trading hub for crude oil in Asia. (PNA) CTB/JLD/SSC