Formosa Petrochemical announces fuel price cut for next week
Jun 10, 2017GeneralComments Off on Formosa Petrochemical announces fuel price cut for next week
Taipei--Formosa Petrochemical Corp. (????), a privately owned fuel supplier, said on Saturday that it will lower gasoline and diesel prices for next week after international crude oil prices posted a decline for the third consecutive week.
The weakness of the global oil market reflected rising concerns over a global supply glut, prompting Formosa Petrochemical to cut domestic gasoline and diesel prices by NT$0.5 (US$0.02) per liter for next week, effective from 1 a.m. on Monday.
It was the second straight week Formosa Petrochemical has lowered fuel prices after a NT$0.6 per liter drop this week.
After the latest price adjustments, prices at Formosa Petrochemical gas stations island wide will fall to NT$20.3 per liter for super diesel, NT$23.0 per liter for 92 octane unleaded, NT$24.4 per liter for 95 unleaded and NT$26.5 per liter for 98 unleaded, the company said.
Cautious sentiment has dominated the global oil market since the beginning of the week, in particular after Saudi Arabia and other Arab states cut diplomatic ties with Qatar, which boosted crude prices amid concerns over escalating tension in the Middle East.
Market analysts said that political tensions in the Middle East could damage an agreement inked by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers to cut output.
The OPEC and non-OPEC countries agreed on May 25 to extend the on-going production cut accord to March 2018 from June.
Energy traders' mood was further affected by a surprise increase in crude oil inventories in the U.S. market, pushing global oil prices even lower, analysts said.
According to the U.S. Energy Information Administration, crude stocks in the United States grew 3.3 million barrels to 513 million barrels in the week to June 2, compared with an earlier estimate of a 3.5 million barrel drop.
For the week, West Texas Intermediate crude lost 3.8 percent in New York, while Brent, the global bench mark, dropped 3.6 percent in London.
Formosa Petrochemical's main competitor, state-owned CPC Corp, Taiwan (??) is expected to announce a similar price cut at noon on Sunday, to take effect 12 hours later.