Oil companies announce price cuts as of August 10
AFTER weeks of rising oil prices, oil companies announced Monday that they would cut prices at the pump this week.
Gasoline prices will drop by 0.65 P per liter, diesel by 0.70 P per liter and kerosene by 0.75 P per liter.
The new price adjustment takes effect at 6 a.m. on Tuesday August 10. This was announced by Seaoil, PTT, Pilipinas Shell, Phoenix, Petron, Total,
Other oil companies are expected to announce a similar price adjustment.
Last week they increased the prices of gasoline by 1.05 pesos per liter, diesel from 0.75 to 0.80 pesos per liter for diesel and 0.75 pesos per liter for kerosene.
These have resulted in adjustments since the start of the year to a total net increase of 13.90 pesos / liter for gasoline, 11.10 pesos / liter for diesel and 9.45 pesos / liter for kerosene.
Oil companies adjust their prices every week to reflect movements in the global oil market.
The Department of Energy (DOE) cited strong demand, insufficient increases in supply and continued US sanctions as reasons for the rise in global oil prices.
He said the continued recovery in global demand resulted in global crude oil supply-demand balance deficits of 370,000 and 140,000 barrels per day (b / d), respectively, in the first and second quarters of 2021. .
Based on reports, the DOE said this market sentiment will continue to grow, with increasing demand expected from ongoing supply restrictions by the Organization of the Petroleum Exporting Countries (OPEC) and sanctions from the Petroleum Exporting Countries (OPEC). United States versus Iran and Venezuela, all of which are seen as the underlying factors pointing to sustained price increases for the remainder of the year.
Platts Analytics projections for the third quarter of the year show growing demand. The increase in demand is expected to be about 5.98 million barrels / day of crude oil higher than in the second quarter.
In addition, the expected increase of about 5.98 million bpd for the third quarter will not be fully covered by the expected increase in supply.
The projection shows that non-OPEC countries will only increase their supply by around 830,000 b / d, while OPEC countries have only agreed to increase production by around 800,000 b / d for the third trimester. This imbalance for the third quarter is expected to result in a forecast shortfall in world crude oil supply of around 4.35 million bpd.
Following OPEC’s current restriction on crude oil supply, around 2 million b / d from Iran and 700,000 b / d from Venezuela remain limited due to US sanctions. These additional supplies could have helped to make up for the shortage of supply.