Continued increase in fuel prices seen

MANILA, Philippines - Crude prices will continue to increase and go beyond the current $50 to $60 per barrel, the Department of Energy (DOE) said in its latest oil price monitoring report, citing data from the International Energy Agency (IEA).

As such, local pump prices are likely to continue going up though the price increase may not be too high, an industry source said.

“The IEA said in its five-year forecast that crude prices will recover from around their current range of $50 to 60 per barrel, but remain well below the level of more than $100 per barrel seen before the slump began last June. It further noted that while the world supply-demand balance in oil was expected to tighten by end-2015, the downward market pressures may not have run their course just yet,” the DOE said in its report.

Furthermore, the DOE said that demand for oil from the Organization of the Petroleum Exporting Countries (OPEC) would hold at 29.4 million. It also said that US shale oil output growth would pause before regaining momentum.

Oil prices have started going up in recent weeks due to the uncertainty in the global crude market brought about by labor protests in refineries and chemical plants.

“Union workers went on strike after their three-year contract expired on Feb. 1 and industry negotiators, represented by Shell, failed to address serious concerns raised by USW (United Steelworkers union),” the DOE said in its report.