From tomorrow, the prices of kerosene, diesel, and liquefied petroleum gas (LPG) will increase due to fluctuations in the Means of Platts Singapore (MOPS), international freight costs, and foreign exchange rates. In contrast, the prices for motor spirit and premix fuels will remain stable, influenced in part by the strengthening of the US dollar against the Fijian dollar, as reported by the Fiji Competition and Consumer Commission.
In the crude oil market, significant changes occurred in November 2024, with current prices facing pressure from an oversupplied spot market amid weak demand for December shipments, especially in the Atlantic Basin. Refiners typically reduce their crude stocks towards the year-end for tax purposes, contributing to this trend.
Early November saw a rebound in crude oil prices, driven by positive global market sentiments following the announcement of a substantial fiscal stimulus package in China. This development has created optimism for increased demand from the world’s largest oil importer. Additionally, a weaker US dollar has made crude oil cheaper for non-dollar holding countries, supporting price levels.
Market stability was also impacted by concerns over supply disruptions caused by a tropical storm threatening production in the US Gulf of Mexico, which raised supply risk levels. However, this upward momentum was tempered by an unanticipated increase in US crude stocks, indicating a well-supplied domestic market. Towards the end of the month, prices showed resilience against heightened geopolitical tensions in Eastern Europe and temporary supply disruptions in the North Sea.
Overall, while consumers will face higher prices for specific fuels, the market is stabilizing due to various global influences, including financial policies in major economies and economic resilience amidst supply chain challenges.
This situation could serve as a reminder of the interconnected nature of global energy markets, emphasizing the importance of strategic management and policy responses to ensure stability for consumers.
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