Oil prices will go up starting today after last week’s big time rollback.
Caltex and Seaoil increased per liter prices by P0.50 on gasoline, P0.30 on diesel and P0.70 on kerosene.
Jetti adjusted per liter prices upward by P0.50 on gasoline and P0.30 on diesel.
The movements were mainly caused by fears of tighter global supplies due to disruptions in Libya as well as Iraq’s plans to cut production output.
Data from the Department of Energy (DOE) as of August 27 showed Manila price per liter of gasoline (RON91) stood at P56.85, diesel at P53.15 and kerosene at P69.71.
DOE data also showed year-to-date adjustments as of the same date stood at a total net increase of P6.90 per liter for gasoline, P4.05 per liter for diesel but a net decrease of P4 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude futures for October delivery ended at $78.80 a barrel as US West Texas Intermediate crude futures settled at $73.55 per barrel.
The report said more than half of Libya’s oil production went offline last week with exports stopped at several ports due to a standoff between rival political teams, resulting in the unavailability of around 700,000 barrels per day of oil output.
It added global crude prices were also influenced by Iraq’s reported plans to reduce oil output this month as part of a plan to compensate for producing over the quota agreed with the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
Iraq produced 4.25 million barrels per day (bpd) in July but is reportedly willing to cut output to between 3.85 million and 3.9 million bpd to comply with OPEC’s agreed quota of 4 million bpd.
Analysts also mentioned that expectations for the US central bank to start cutting interest rates this month, supported oil prices despite earlier signs of signs of weak fuel demand.
