Gas prices up next week

Manila Bulletin - - Front Page - By MYRNA M. VE­LASCO

With the up­swing in in­ter­na­tional prices, the good tid­ings on fuel price roll­backs ceased this week, as the price of gaso­line is an­tic­i­pated to go up by 10.40 to 10.50 per liter next week, based on the as­sess­ment of in­dus­try play­ers.

Sources said the price of diesel will un­likely move. How­ever, if there is a roll­back, it will be at a very mar­ginal 10.05 per liter. Or if there will be an

in­crease it would be a measely 10.10 per liter.

Kerosene, which is an­other prod­uct used by many Filipino house­holds, will have a price roll­back rang­ing from 10.25 to 10.35 per liter, oil firms have hinted. Move­ment at the pumps are ex­pected by Tues­day, De­cem­ber 11.

The oil com­pa­nies said they based their as­sess­ment on ref­er­ence data at hand, the swing in Mean of Platts of Sin­ga­pore (MOPS) as of the four trad­ing days last week.

As of the week­end, they were reeval­u­at­ing the im­pact on prices as re­sult of trad­ing in the re­gional mar­ket on Fri­day, De­cem­ber 7.

Some­how, do­mes­tic con­sumers were able to en­joy two months of fi­nan­cial re­lief in their fuel ex­penses – given the hefty price cuts that the oil com­pa­nies had im­ple­mented in eight straight weeks.

Pump prices in the coun­try are an­chored on move­ments of prices in the world mar­ket. One bench­mark is the MOPS pri­mar­ily for fin­ished prod­uct im­porters; while re­fin­ers Petron Cor­po­ra­tion and Pilip­inas Shell Petroleum Cor­po­ra­tion are also tak­ing a look at the price twirl of crude com­modi­ties.

Out­put cut­back

Price spikes nev­er­the­less reigned in the world mar­ket on Fri­day, fol­low­ing the ce­mented deal be­tween the Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries (OPEC) and its ally-pro­duc­ers for an out­put cut­back of 1.2 mil­lion bar­rels per day.

OPEC pro­duc­ers had given thumbs up to 800,000 bar­rels per day pro­duc­tion cut­back; while Rus­sia-led pro­duc­ers in the al­liance com­mit­ted to re­duce out­put by 400,000 bar­rels per day.

This is a new round of ‘mar­ket re­bal­anc­ing’ sim­i­lar to what the Vi­enna al­liance of OPEC and Rus­sia had done dur­ing the price crash to­ward the yearend of 2014.

It was noted that Iran partly put a drag on the de­ci­sion lead­ing to the out­put snip, hence, it took the rel­e­vant par­ties to reach only an agree­ment on Thurs­day, De­cem­ber 6.

OPEC agree­ment

In Vi­enna, OPEC mem­bers and 10 other oil pro­duc­ing na­tions, in­clud­ing Rus­sia, agreed Fri­day to cut out­put by 1.2 mil­lion bar­rels a day in a bid to re­verse falls in prices in re­cent months, a re­port from the Agence France Presse (AFP) said.

En­ergy min­is­ters reached the deal – which takes ef­fect from Jan­uary 1 but has al­ready sent prices surg­ing on oil mar­kets – af­ter two days of talks at OPEC head­quar­ters in Vi­enna.

"OPEC group coun­tries are con­tribut­ing 800,000 bar­rels per day as a cut, and the non-OPEC (coun­tries) will be con­tribut­ing 400,000 bar­rels per day," Emi­rati Oil Min­is­ter Suhail Mo­hamed al-Mazrouei said at a news con­fer­ence.

OPEC and its part­ners, which to­gether ac­count for around half of global out­put, met against the back­drop of a glut in the mar­ket which had led to oil prices fall­ing by more than 30 per­cent in two months.

Mazrouei said that three coun­tries had been al­lowed ex­emp­tions from the agree­ment due to "spe­cial cir­cum­stances."

"Those coun­tries are Iran and Venezuela be­cause of the sanc­tions and Libya be­cause of the fact that un­for­tu­nately they are on and off," he added, al­lud­ing to the im­pact on Libyan pro­duc­tion of con­tin­u­ing con­flict there. (With a re­port from AFP)

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