Diesel pump prices up, gasoline down next week

Motorists are set to see another round of mixed movements in pump prices next week, according to an oil industry source.

Citing estimates based on the Mean of Platts Singapore and foreign exchange averages in the past four days, the source said the following are the expected adjustments in pump prices for the week of October 26:

• Diesel +1.50 to +2.50
• Gasoline -1.00 to -1.50

These estimates exclude the week-on-week freight movements, according to the industry source.

“Oil advanced after intensifying Houthi attacks on Saudi infrastructure and vessel attacks in the Gulf heightened concerns that the escalating hostilities could hit supply. Loadings outside of the Arab Gulf are now threatened as well, jeopardizing Gulf crude loadings and ship-to-ship transfers that helped support regional loadings,” the source said.

The source noted that the fear of escalation of tensions after the US midterm elections also adds further to market anxiety.

The decreasing oil flows from the Gulf and escalating Ukrainian attacks on Russian refineries also reportedly led the prices of refined products, particularly diesel, to go even higher.

“While the prospect of additional Russian diesel supply, after the US decision to temporarily waive key Russia-related US sanctions and tariffs, and emergency stock releases that temporarily helped moderate prices have offered relief, rising geopolitical risk has offset the available supply sources and lifted prices,” the source said.

Rising gasoline inventories in Singapore, on the other hand, reflected an improving product availability in Asia.

“The continuing tightness in diesel has encouraged refiners to maintain crude processing rates, potentially sustaining gasoline supply even as demand weakens,” the source added. —AOL, GMA News