Multiple Factors Cause Continuous Oil Price Increase
Prices of gasoline and diesel have been continuously increasing these past few weeks, but it is not because of what most of Filipinos think.
The Department of Energy (DOE), in its statement recently detailed causes to give light to motorists and oil consumers, about the stuttering oil price chain.
Based on DOE’s Oil Monitoring report as of September 27, 2018, Dubai crude has increased week-on-week by around US$0.25 per barrel.
Mean of Platts Singapore (MOPS) gasoline and diesel have also increased at US$0.39 per barrel and US$0.14 per barrel, respectively.
According to the report, factors affecting the increase of crude oil prices include the deepening trade tension between the United States and China, which is expected to dent global crude demand.
China is the world second largest oil consumer.
The tight gasoline supply is also coupled with robust demand from other large consumers like Indonesia and the Persian Gulf to support the East of Suez gasoline market.
In addition, Iran, the third largest producer among the Organization of Petroleum Exporting Countries (OPEC), has declined their oil export loading by 580, 000 barrels a day in the past three months.
In 2017, Iran’s average oil production was about 3.8 million barrels per day.
Meanwhile, the week-by-week depreciation of the value of Philippine Peso against the US dollar by Php 0.12 to 54.08 from Php 53.96 is not helping in bettering the situation as well.
More reports and updates are made available on their website www.doe.gov.ph. (Jan Karla Mario/PIA7)
