MANILA, Philippines—Oil prices are slightly up for the week, breaking five straight weeks of price cuts even as industry observers said prices for major fuel products would likely remain weak amid soft demand in the global market.
Petron, Shell, Chevron, and Seaoil said in separate advisories that they raised pump prices by P0.20 per liter for gasoline, P0.25 per liter for diesel, and P0.30 per liter for kerosene from 6 a.m. of November 4.
The Thai-led PTT Philippines and French-led TOTAL Philippines said it imposed similar price hikes for gasoline and diesel at the same time as the other oil firms.
INQUIRER FILE PHOTO
The adjustments, they said, reflected movements in the international petroleum market.
Other oil firms have not made official announcements but are expected to implement similar adjustments since most fuel products in the country are either imported or refined from imported materials.
Year-to-date total adjustment for gasoline was at a net decrease of P5.28 per liter while prices for diesel were at a net decrease of P6.95 per liter.
An oil supply gut is keeping prices down in the international market even with ongoing geopolitical risks in areas such as Iraq, where sectarian fighting has threatened fuel routes.
Analysts say the global oil market is awash with supply with North America experiencing an energy boom.
Opec, the organization of petroleum exporting countries, said its studies showed that supply growth would likely overtake that of oil demand.
At the same time, global commodity prices remain weak in emerging markets and in Europe. Even gold prices have been wallowing around the $1,200 per ounce level, which is much less than the $1,800 highs of 2011. Deflation is also a concern as dropping oil prices may hamper stimulus efforts in recovering economies. In general, dropping oil prices tend to create declining prices elsewhere.
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