Fuel prices slashed on weak demand

OIL FIRMS lowered pump prices today (Tuesday) as demand is seen to weaken further the rest of the year.

Petron rolled back gasoline prices by P1 per liter, diesel by 35 centavos per liter and kerosene by 40 centavos per liter at 12:01 a.m. today. Shell lowered prices by 95 centavos per liter for gasoline, 40 centavos a liter for diesel and 25 centavos a liter for kerosene also at 6 a.m. Tuesday.

Phoenix Petroleum and PTT Philippines cut prices by P1 per liter for gasoline and 35 centavos per liter for diesel likewise from 6 a.m.

Ahead of them, Eastern Petroleum slashed gasoline prices by P1 per liter and diesel by 40 centavos a liter from 6 p.m. Monday.

Fernando L. Martinez, Eastern Petroleum chair and CEO, said in a statement the latest price adjustments reflected the downward trend in world oil prices at the close of last week’s trading owing to oversupply against slow demand outlook.

“Analysts expect a sharp slowdown in global oil demand in the fourth quarter, which marks the slowest pace of growth in five quarters, while they also expect investments [in the petroleum sector] to likely drop further next year,” Martinez said.

Industry observers said they see prices remaining low until year-end, noting that speculators seem less bullish and are cutting back on speculative bets. Studies said that rising inventories plus the impact of El Niño globally could lead to reduced refinery production and lower use of crude oil by refiners. A mild winter is expected for Europe and for North America, which is another factor on expectations of weak demand. Riza T. Olchondra