Oil prices up on bullish U.S., China demand
MANILA, Philippines—Oil firms raised diesel and gasoline prices Tuesday as the international market turned bullish on fuel products amid positive indications on manufacturing in the U.S. and China — the world’s top oil consumers.
Diesel prices grew by P0.20 per liter and gasoline by P0.55 per liter, according to separate advisories made by oil firms. No adjustments were announced for kerosene.
Petron, Shell, Chevron, Phoenix Petroleum, Seaoil, TOTAL, and PTT Philippines said they raised diesel and gasoline prices starting 6 a.m. Tuesday, May 27.
The adjustments, the companies said, reflected the prices of refined petroleum products in the world market.
Including the price adjustment this week, the year-to-date total adjustments stand at a net decrease of P1.25 per liter for diesel and a net increase of P0.40 per liter for gasoline.
Last week, crude prices grew following an industry report showing stronger-than-expected manufacturing expansion in the U.S. in May. Financial data firm Markit said its preliminary or flash US Manufacturing Purchasing Mangers Index rose to 56.2 in May from 55.4 in April.
Article continues after this advertisementOil prices also gained support from China’s positive manufacturing data, where HSBC/Markit’s Flash China Manufacturing PMI rose to 49.7 in May from April’s 48.1 — the first time the PMI just about reached the dividing figure of 50 since December 2013.
Article continues after this advertisementConflicts in Libya and Ukraine, which quickly hit a nerve with fuel suppliers to Europe, also supported crude prices. There is renewed concern on Libya, an OPEC member and home to Africa’s largest oil reserves, amid resurgence in violence as protesters shut down the headquarters of the company running the Brega oil port. That terminal is the only eastern port to have remained open throughout most of the government’s nine-month stand-off with a rebel group.
Political instability and attacks on oil assets have limited Libya’s oil output in the three years following the toppling of leader Muammar Qaddafi.
In Ukraine, more than a dozen servicemen were killed on Thursday in an early morning clash with pro-Russian separatists, causing security concerns ahead of Sunday’s vote.
Analysts also cited a return to risk-sensitive assets such as commodities as the U.S. Federal Reserve is expected to keep interest rates near zero over the near-term.
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