Oil prices went up by a hefty P1.25 per liter starting 6 a.m. Tuesday, following supply disruptions in major producing countries that sent world prices rising.
The oil firms raised kerosene prices by P1.25 per liter, gasoline by P1.20 per liter and diesel by P1 per liter.
“This is to reflect the movements in the international petroleum market,” Seaoil Philippines said.
Phoenix Petroleum Philippines said the price movement was “due to higher crude prices brought about by the tensions in Nigeria and the wildlife in Canada.”
Among the companies that issued price advisories as of press time include Phoenix, Seaoil, Eastern Petroleum and PTT Philippines. Other companies are expected to follow suit.
Energy director Melita Obillo said over the weekend that oil prices are likely to go up this week due to “better overall demand, disruption of supply from Nigeria, production outages in Canada due to the wildfires and political crisis in Venezuela.”
The International Energy Agency previously reported that the global oil market surplus will shrink later this year.
IEA, according to the Energy Department, sees the oil market moving further toward balance, predicting a greater drop off in non-Opec supply and global demand growth remaining solid in 2016, noting the ramp up in Iran exports in April.
Non-Opec supply is estimated to decline this year to 800,000 barrels per day from 700,000 barrels per day.
Supply disruptions in Opec members—Nigeria, Libya and Venezuela, meanwhile, have collectively knocked out 450,000 barrels per day of output.
IEA projects that oversupply will be at 1.3-million barrels per day through the first half of this year (down from last month’s projection of 1.5-million barrels per day), as demand has been stronger than expected from China, India and Russia.
Demand growth expectation for this year is expected to remain at 1.2-million barrels per day, but sees oversupply dropping to only 200,000 barrels per day in the latter half of the year.
IEA also sees India surpassing China as the leading source of oil demand growth.
In Asia, Platts was quoted as saying that the market is expected to see more supply emerging from South Korea and Taiwan for June, when some refineries restart from scheduled maintenance.
Regional demand remained supported on the back of dry conditions in India and Vietnam, causing more robust demand than usual.
Most local oil companies implemented a P0.30 per liter increase in diesel last May 17 but did not raise gasoline and kerosene prices.