THERE is a strong likelihood for the prices per liter of gasoline to go up on Tuesday – Dec. 11 – as US oil prices stabilized due to a drop in US crude oil inventories, according to the Department of Energy.
Fuel prices are mixed that an oil industry source shared the following weekly outlook:
* highly probable price increase for gasoline
* slight decrease or increase for diesel
* probable rollback for kerosene
The outlook snaps eight straight weeks of rollbacks in pump prices of petroleum products. Fuel price adjustments usually take place every Tuesday.
In a separate statement, the Department of Energy noted the following factors influencing the fuel price outlook:
* stable US oil prices as crude oil inventories fell
* sentiment remains weak as the Organization of Petroleum Exporting Countries (OPEC)
* postponed a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia
*oil producers hit by 30-percent plunge in crude prices since October on supply surges as the demand outlook weakens amid a global economic slowdown
*output from the world’s biggest producers – OPEC, Russia, and the United States – up 3.3 million barrels per day since the end of 2017 to 56.38 million barrels per day or nearly 60 percent of global consumption
Sentiment in the Asian gasoline market remained bearish as market participants continued their search for support amid a chronic supply overhang. Excess supply continued to pressure down the Asian gasoline market, the DOE said.
Weak demand contributed extending a price downtrend, with more gasoil floated on water due to lack of buyers in the market.
According to Risk.net, gasoil is a middle distillate and form of heating oil used primarily in heating and air-conditioning systems.
“The weak North Asian demand has forced suppliers to float off-spec gasoil not tailored for winter, which cannot go West, increasingly making storage options more attractive,” the DOE said. (With GMA News/PN)
