Oil Price at $60/bbl

**falken** · June 25th, 2005 01:44 PM

From the BBC:

Oil price hits $60 for second day
Crude oil prices closed at new highs after hitting a record $60 a barrel for a second day, on concerns strong demand will continue over the coming months.

US light sweet crude touched the $60 mark overnight, and later closed 42 cents up at a new high of $59.84.

In London, the price of Brent crude gained 30 cents to $58.26, close to Monday's high of $58.58.

Analysts said that with the peak summer usage period due in the US, prices may be close to or above $60 for a while.

"It's a pretty key psychological mark," said Daniel Hynes, an analyst at ANZ Bank. "It will be important to see if it can establish itself above that level."

No respite

There are a number of factors underpinning the price of crude oil.

Oil analysts are worried that demand seems to show no signs of slackening off, despite an almost 40% increase in the price of crude oil since the start of 2005.

If anything, the global thirst for crude has increased as more and more drivers take to the road, some of the world's largest economies emerge from a slowdown and others look to stoke rapid expansion.

Oil production cartel Opec has been called upon to increase the amount of crude it pumps, but has repeatedly said that it is doing all it can to meet demand and cool price growth.

"We are worrying that the tendency is that [prices] will increase," said Purnomo Yusgiantoro, oil minister of Opec member Indonesia. "Oil demand will increase when facing summer and winter."

Bottleneck

A report showing that China imported 8.2% more oil in May than in the same month a year ago also helped underpinned prices.

Supplies are likely to be tight as other booming economies also continue to glug crude, analysts said.

A report showed that China imported 10.41 million tonnes of crude oil last month, or 2.45 million barrels per day (bpd).

On top of that, there have been threats of disruption in Nigeria, and the spectre of a looming strike by oil workers in Norway.

Even though industrial action was averted, the market has remained jittery.

"There certainly does not seem to be much out there to really pull prices back down at the moment," Mr Hynes said.

It's about time every single one of us cuts down on energy consumption, no more unnecessary trips, turn off unused lights, drive fuel efficient cars, stay away from SUVs and other gas guzzlers, car pool as much as possible, to bring down demand for oil or else prices will continue to go up.

**BlueBimmer** · June 25th, 2005 02:12 PM

yep, kaya everybody pls go back to 4 bangers like vios, city, jazz, civic, altis etc. hehe

**gearspeed** · June 25th, 2005 02:34 PM

Ako pagpumupunta ako sa school nagcocomute ako para makatipid sa gas..

**Juan Tamad** · June 25th, 2005 05:24 PM

As prices of Oil goes up... mas ok na to get smaller displacement cars...

Ang toyota ba will release their 1.0 VVT-i VIOS? Mukhang viable na ito.

**Monseratto** · June 25th, 2005 07:18 PM

Eto na ang effect, weekly increase na to

Caltex, Total jack up prices by P0.50 per liter, others to follow
abs-cbnNEWS.com 6/25/2005 5:01:41 PM

At least two oil companies have increased their pump prices by P0.50 per liter Saturday, a move expected to be followed by other oil players.

DZMM said first to raise prices was Caltex Philippines early Saturday. The price increase covers all gasoline, diesel and kerosene products.

Small player Total Philippines followed suit at 12:01 p.m. by effecting the same amount of increase.

Company officials said the new price increase was prompted by the upward movement in world crude prices. Crude prices have already hit a record high of $60 per barrel this wek while the Dubai crude was selling at $52 per barrel.

Caltex management nevertheless assured jeepneys and buses would continue to get diesel discounts at their 104 gasoline stations.

This was the second price increase by oil companies this June.

At present, gasoline averages P30 per liter while diesel sells for P27 per liter.

Energy Secretary Rafael Lotilla also on Saturday denied that oil prices will hit P50 per liter as soon as the new value added tax (VAT) law is enforced.

The department has estimated that prices will swing between P30 to P32 per liter.

On Friday, consumer advocate Raul Concepcion predicted that oil prices will soar to P50 per liter with the implementation of the VAT law.

A day earlier, Concepcion said the price adjustment caused by VAT would only amount to P38 per liter.

The new VAT law passed by Congress removes exemption previously enjoyed by the oil sector, which, in turn, is expected to pass on the cost of the new tax to oil consumers.

Tax experts said oil prices will increase by P2 to P3 per liter due to VAT.

Oil players as early as Thursday have sounded the alarm for a new price adjustment.

Rex Tantiongco of the Independent Petroleum Companies Association had said world crude prices reached an all-time high recently, which makes it inevitable for oil firms to jack up their prices.

Tantiongco said the imminent price adjustments, in fact, exclude the additional VAT to be imposed on petroleum products starting July 1.