by Madelaine B. Miraflor October
2, 2016
An increase in domestic
gasoline and diesel prices may be felt this week after Organization of the
Petroleum Exporting Countries (OPEC) decided to seal a tentative agreement to
limit oil production amid oversupply.
“There is a high
probability of oil prices being driven up as a consequence of OPEC’s decision,”
Energy Undersecretary Wimpy Fuentebella said.
In the latest oil price
situationer of the Department of Energy (DOE), it showed that while supply is
stable, oversupply is still a concern.
“OPEC’s tentative agreement
to limit oil production increases oil prices. As a conclusion, domestic
gasoline and diesel prices may increase,” DOE said.
In a meeting, OPEC
agreed last week to limit oil production between 32.5 million and 33 million
barrels per day (b/d), resulting in up to 740,000 b/d production cut.
Local oil companies
followed with a price increase of R0.25 for gasoline and diesel and R0.20-30
for kerosene.
Fuentabella, however,
noted that supply is just one factor that affects oil prices.
“Other factors include
demand, transport, foreign exchange, peace and order and many others. Hence,
economists have a hard time predicting market prices for oil,” he said.
No comments:
Post a Comment