Domestic fuel prices expected to rise next week, predict market sources
Fuel prices in Taiwan are expected to rise next week in reflection of a hike in international crude oil prices in recent sessions, market sources said Friday.
The state-owned CPC Corp., Taiwan is likely to announce a hike for gasoline and diesel next week, based on a weighted oil price formula com- prising 70 percent Dubai crude and 30 percent Brent crude, the sources said.
With a drop in international crude oil prices, CPC’s fuel prices could rise accordingly by NT$0.2 (US$0.006)NT$0.3 per liter next week, marking the second consecutive week for local fuel prices to move higher.
International crude prices rose earlier this week after an oil inventory report released by the U.S. Department of Energy said that oil reserves in the country for the week to June 5 fell by 6.8 million barrels, while gasoline supplies for the same week also dropped by 2.9 million barrels.
The drop in oil reserves in the U.S. surpassed a decline of 1.9 million barrels for the week to May 29.
However, crude prices fell back to some extent overnight from a session earlier after the International Energy Agency (IEA) said in a forecast that although global oil demand has been on the recovery, supply still outpaced demand.
The West Texas Intermediate (WTI) crude oil price in New York fell US$0.27 to US$61.16 per barrel at one point Thursday, but the WTI prices still rose about 3.3 percent week to date.
As a result, according to the CPC website, the average price of a barrel of crude under its weekly floating price formula stood at US$62.62 as of June 11, up from US$61.96 the previous week.