The prices of kerosene, diesel, and liquefied petroleum gas are set to increase starting tomorrow, attributed to fluctuations in the Means of Platts Singapore (MOPS), rising international freight costs, and shifts in foreign exchange rates. In contrast, there will be no change in the prices of motor spirit and premix, highlighting the impact of a strengthening US dollar against the Fijian dollar, as noted by the Fiji Competition and Consumer Commission.
In the crude oil market, November 2024 saw variable price movements influenced by a well-supplied spot market amid sluggish demand for December’s crude shipments, particularly within the Atlantic Basin. Traditionally, refiners tend to minimize crude stocks towards the year’s end for tax purposes.
At the start of November 2024, crude oil prices rebounded thanks to positive sentiment surrounding global market fundamentals, particularly following the announcement of a significant fiscal stimulus package in China, which raised expectations for increased demand from the world’s leading oil importer. Additionally, a weaker US dollar made crude oil relatively more affordable for buyers using other currencies, bolstering price support.
However, traders remained cautious due to the potential supply disruptions caused by a tropical storm threatening production in the US Gulf of Mexico, which initially raised supply concerns. This bullish price momentum faced some resistance with an unexpected rise in US crude inventories, indicating a well-stocked domestic market. Despite these challenges, prices showed resilience later in the month amid geopolitical tensions in Eastern Europe and temporary supply interruptions in the North Sea.
Overall, while the increase in energy prices may pose challenges for consumers, it reflects broader market dynamics and potential geopolitical developments that could stabilize or boost the energy sector in the long run. It is also a reminder of the interconnectedness of global markets and how localized events can have ripple effects worldwide.
Summary: Starting tomorrow, kerosene, diesel, and liquefied petroleum gas prices will rise due to international market conditions, while motor spirit and premix will remain stable. November crude oil prices fluctuated due to various factors, including supply risks and market sentiments, ultimately displaying resilience against broader geopolitical tensions.
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