Do­mes­tic fuel prices could rise next week on crude oil re­bound

The China Post - - LOCAL -

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.

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