The improving Covid-19 situation, easing of mobility restrictions and reopening of borders by many countries fueled the prospects of higher oil demand, according to the Department of Energy.
After nine weeks of oil price hikes, motorists had a slight respite this week after oil firms announced price rollbacks of kerosene and diesel.
Starting Tuesday morning (November 2), Caltex, Cleanfuel, Petro Gazz, Petron, Seaoil, and Shell will cut diesel prices by P0.35 per liter; however, gasoline prices will rise by P1.15 per liter.
Caltex, Petron, Seaoil, and Shell will also reduce kerosene prices by P0.30 per liter.
In the past nine weeks of oil price hikes, diesel has increased by P9.10 per liter, P8.35 per liter for gasoline, and P8.06 per liter for kerosene.
According to Department of Energy’s (DOE) oil bulletin for trading days October 11 to 15, Dubai crude traded higher by $3 per barrel week-on-week, whileMean of Platts Singapore (MOPS) gasoline and diesel also went up by $5.25 per barrel and $3.80 per barrel, respectively.
The DOE attributed the price increases of the oil price benchmarks mainly due to tight supply and improving oil demand.
“The improving Covid-19 situation, easing of mobility restrictions and reopening of borders by many countries fueled the prospects of higher oil demand,” it added.
Last Friday, Brent and West Texas Intermediate (WTI) rebounded, closing at $84.34 a barrel and $83.57 a barrel, respectively.
Global oil prices were higher ahead of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting as the cartel is expected to maintain its output amid improving demand for the commodity. (See also: Surging oil prices dampen recovery )
Meanwhile, liquefied petroleum gas (LPG) prices have increased for November.
Petron announced that it will implement a P3.10-per-kilogram increase on LPG starting at 4:00 p.m. Monday (November 1).
This will translate to a P34.11 increase for a standard 11-kilogram LPG tank.
Petron’s AutoLPG price will also go up by P1.73 per liter this month. (With report from PNA)
Tags: #DepartmentOfEnergy, #oilprices, #oilpricerollback