Supply glut drives oil prices down

MANILA, Philippines - Oil companies are cutting fuel prices again today amid excess supply in the world market.

Pilipinas Shell Petroleum Corp. yesterday said it would reduce prices of gasoline by P0.80 per liter, kerosene by P1.20 per liter and diesel by P1.10 per liter effective 6 a.m.

In a separate advisory, Flying V said it would implement similar price cuts starting 12:01 am.

Phoenix Petroleum Philippines Inc. and PTT Philippines Corp. said they would cut prices of gasoline by P0.80 per liter and diesel by P1.10 per liter effective 6 a.m.

Eastern Petroleum Corp., Petron Corp., SeaOil Philippines Inc., Total Philippines Corp., UniOil Petroleum Philippines Inc. have yet to announce price rollbacks as of press time.

Ample supply in the international market pulled down local prices this week, according to Department of Energy-Oil Industry Management Bureau director Melita Obillo.

There is excess supply with the growing shale production in the US and the eighth straight week rise in the US oil rig count, Obillo said, adding demand in the market was limited.

Oil prices were influenced by the Organization of the Petroleum Exporting Countries and non-OPEC compliance to cut from 92 percent in January to 95 percent in February, she said.