Local oil companies raised the pump prices of gasoline, diesel and kerosene today (Tuesday) amid declining oil rig deployments in the United States, which fueled speculation the current oversupply in the oil market would be tempered.
Seaoil increased the price of gasoline by 95 centavos per liter, diesel by P1.30 per liter and kerosene by P1.30 per liter effective at 6 a.m. today. Petron, Shell and Chevron had not made announcements as of press time but were expected to make similar adjustments.
Eastern Petroleum, Phoenix Petroleum and PTT Philippines implemented the same adjustments at 6 a.m. today.
Analysts, however, said the price hike was unlikely to continue due to the declining oil drill rig count in the United States, an oil-guzzling economy where the shale oil boom in 2014 drove the global fuel market to oversupply.
One estimate said the declining rig count means the United States would produce 445,000 barrels less oil per day. Most oil industry stakeholders still think the price trend would be generally downward this year.
“I think the market is oversupplied and we will continue to enjoy lower oil prices in the short to medium term,” Eastern Petroleum chair and chief executive office Fernando Martinez said via text message. Riza T. Olchondra