Recent world events have once again caused the increase of oil prices in the local market. The Department of Energy (DOE) has observed the continuing decline of oil production by members of the Oil Petroleum Exporting Countries (OPEC), as well as by countries outside of OPEC.
Saudi Arabia, with its large contribution to world oil supply, has steadily reduced its crude oil production by 336,000 barrels per day (B/D) this March, bringing the total OPEC reduction to around 1.6 million B/D as of March 2019. Further cuts on exported crude oil from Saudi Arabia are expected in April 2019, with the announced reduction of an additional 635,000 B/D.
Actions by the United States, with the imposed sanctions on Venezuela and Iran have also affected world oil prices including the impending Iran export waiver expiring in April, affecting a further reduction of crude oil supply by around 1.1 million B/D. This has already resulted in recent cuts of U.S. oil reserves, causing the overall increase in crude prices.
In the East Asian region, scheduled shutdowns due to the maintenance of oil processing facilities in Japan (JXTG Nippon Oil & Energy) and China (Sinopec) are also expected to contribute in the further reduction of oil supply.
DOE Secretary Alfonso G. Cusi said, “The nation, along with the majority of the globe, is facing the realities of socio-political turmoil in oil-producing countries, which, sadly, results in fluctuations of oil prices. I cannot stress enough that, as an oil importing country, our market is susceptible to these effects, and it is up to us as a nation how we handle this challenge.”
ENERGY EFFICIENCY AND CONSUMER POWER OF CHOICE
Meanwhile, Energy Chief reiterated that despite the price adjustments in the world market, the consumers must continue to utilize energy efficiently and exercise their power of choice to enhance more competition in the retail level.
“The retail prices and services per retail station are different. Our consumers must compare the prices and services and choose the retail station that provides the best products and services that suit their needs,” Secretary Cusi explained.
He added, “Everyone must be aware of their respective energy consumption habits and continue to observe an energy efficient lifestyle, whether we have fuel price increases or not.”
“The DOE will continue its oil price and fuel quality monitoring activities,” the Energy Secretary concluded.
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