Taipei, State-run oil refiner CPC Corp., Taiwan, said Sunday that it will lower its domestic gasoline and fuel prices for next week, effective at midnight, marking the third consecutive week in which the oil supplier has cut fuel prices.
The move came after a fall in international crude prices this week amid rising concerns over a global supply glut after the United States forecast an increase in shale oil crude production, market analysts said.
CPC said it will lower its gasoline prices by NT$0.6 (US$0.20) per liter and cut its diesel prices by NT$0.7 per liter for next week after a NT$0.6 per liter drop for both gasoline and diesel this week.
After the latest adjustments, prices at CPC gas stations nationwide will fall to NT$23.6 per liter for super diesel, NT$25.8 per liter for 92 octane unleaded, NT$27.3 per liter for 95 unleaded and NT$29.3 per liter for 98 unleaded, all record lows for this year, the company said.
CPC calculates its weekly fuel prices based on a weighted oil price formula made up of 70 percent Dubai crude and 30 percent Brent crude.
Following the latest fluctuations in international crude oil prices, CPC's average price for crude oil was calculated at US$61.03 per barrel this week, a decrease of about US$3.00 from a week earlier, according to its website.
The falling international crude oil prices came after the U.S. Energy Information Administration (EIA) released a report that said U.S. shale oil production is likely to rise to as many as 11 million barrels per day in 2019, which could compromise efforts by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers to cut their outputs, analysts said.
However, the gains posted by international crude oil prices were limited to some extent by a lower-than-expected increase in U.S. crude oil inventories to the week to Feb. 9, the analysts added.
According to the EIA, crude stockpiles in the U.S. market rose 1.8 million barrels to 422.1 million last week, marking the third consecutive week of gains, but the increase failed to beat an earlier market estimate of a rise of 3.6 million barrels.
Under such circumstances, private gasoline oil supplier Formosa Petrochemical Corp. announced a day earlier that it has decided to cut its gasoline and diesel prices by NT$0.6 and NT$0.7 per liter, respectively, effective at 1 a.m. Monday.
After the cut, prices at Formosa Petrochemical gas stations islandwide will drop to NT$23.3 per liter for super diesel, NT$25.8 per liter for 92 octane unleaded, NT$27.2 per liter for 95 unleaded and NT$29.3 per liter for 98 unleaded, the company said.
Source: Focus Taiwan News Channel