MANILA, Philippines—Oil prices are seen to be trending upwards on stronger demand and positive credit data from China—suggesting that the fuel-guzzling economic power is avoiding a sharp slowdown and will keep driving oil demand, industry sources said.
Oil prices are seen to be trending upwards on stronger demand and positive credit data from China—suggesting that the fuel-guzzling economic power is avoiding a sharp slowdown and will keep driving oil demand, industry sources said. AP FILE PHOTO
PTT Philippines and Pilipinas Shell are in fact raising pump prices of gasoline by P1 per liter effective 6 a.m. of Tuesday. PTT increased the price of diesel by 50 centavos a liter and Shell by 40 centavos/liter.
Shell also raised the price of kerosene by 25 centavos a liter.
There may be a series of increases in gasoline prices toward summer, when fuel demand for cars, industries and power plants rise.
Analysts also attributed the price hikes to the growth in economic indicators in China, one of the world’s largest fuel consumers aside from the United States.
Earlier this month, there had been concerns about China’s growth as economists suggested its gross domestic product growth could slow to 7.4 percent in 2014 from 7.7 percent in 2013.
Coupled with a reported increase in OPEC output in January due to a partial recovery in Libya’s supply and higher shipments from Iraq and Iran, that would have dampened price expectations.
However, growth indicators for China have since been reported. Most recently, China’s Central Bank said lending among Chinese banks surged to $430 billion in January from $198 million in December 2013, which beat market expectations and spurred optimism among traders that there will be continued demand for fuel among commercial and industrial clients.
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PTT Philippines, Pilipinas Shell hike fuel prices effective Tuesday