LOCAL fuel prices are up for the second consecutive week as the number of drilling rigs in the United States fall to a record low and on news US states are set to relax quarantine lockdowns.
According to the Department of Energy (DOE), the latest average Manila price per liter of gasoline (RON95) is at P38.27, diesel at P27.43 and kerosene at P27.41.
Petron, Shell and Seaoil adjusted the per liter prices of gasoline by P2, diesel by P1.90 and kerosene by P1.25.
Phoenix and PTT implemented an increase of P2 per liter for gasoline and P1.90 per liter for diesel.
The adjustments may have yet to reflect the additional costs due to the 10-percent import duties on fuel as the DOE has yet to receive inventory reports from retail stations.
The DOE said as of May 6, year-to-date adjustments stood at net decreases of P14.52 per liter for gasoline, P16.99 per liter for diesel and P22.50 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude settled 5.1 percent higher at $30.97 a barrel while US West Texas Intermediate crude futures ended up 5 percent to $24.74 a barrel.
The report said the number of operating oil and natural gas rigs by 34 to an all-time low of 374 last week.
The US Energy Information Administration’s weekly report on Wednesday also showed 15 weeks of consecutive rises in crude stocks although the rate of growth in inventories has slowed since a record build of 19 million barrels in early April.
The market is also now watching for more data to prove that the Organization of the Petroleum Exporting Countries and allies led by Russia are complying with a record 9.7 million barrels per day production cuts that began this month.
Iraq is yet to inform its regular oil buyers of cuts to its exports while Australia became the latest country to plan an easing of lockdowns alongside France, parts of the US and Pakistan.
However, analysts warn the price recovery could be affected on how the economic crisis will affect oil demand in the coming months especially after US lost 20.5 million jobs in April, the steepest plunge in unemployment since the Great Depression.
