Do­mes­tic fuel prices ex­pected to rise next week, pre­dict mar­ket sources

The China Post - - TAIWAN BUSINESS -

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.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.