Domestic fuel prices could rise next week on crude oil rebound
Gasoline and diesel prices in Taiwan are likely to rise next week in reflection of a rebound in international crude oil prices, market sources said Friday.
Based on a floating pricing mechanism used by state-owned oil supplier CPC Corp. ( ), domestic fuel prices could rise by NT$0.6 ( US$0.02) NT$0.7 per liter next week after an increase of NT$0.3 this week. It could be the second consecutive week in which fuel prices have moved higher.
CPC adjusts domestic fuel prices on a weekly basis based on a weighted oil price formula consisting of 70 percent Dubai crude and 30 percent Brent crude.
The sources said that crude oil prices hit a fresh high for 2015 overnight after military conflicts escalated in Yemen after a tribal group made up of former al-Qaida militants took control of a major oil terminal in the Middle Eastern country, which has raised concerns over global oil supplies.
In Europe, Brent crude oil prices for June delivery rose US$0.66 cents to US$63.98 a barrel, while crude oil prices in the U.S. market also gained US$0.32 to $56.71.
It was the sixth consecutive trading session in which crude prices had risen.
The higher prices in the past session also reflected a forecast released by the U.S. Energy Information Administration, which said crude oil production from seven key shale regions in the country is expected to fall by 57,000 barrels per day in May from April.