The cost of kerosene, diesel, and liquefied petroleum gas is set to rise starting tomorrow due to fluctuations in the Means of Platts Singapore (MOPS), alongside changes in international freight and foreign exchange rates. Meanwhile, the prices for motor spirit and premix fuels will remain steady, attributed to the strengthening of the US dollar against the Fijian dollar, according to the Fiji Competition and Consumer Commission.
In November 2024, the crude oil market experienced significant changes. Prices initially increased at the month’s onset, buoyed by positive sentiment surrounding short-term global market dynamics, bolstered by a large fiscal stimulus package in China that raised expectations for increased demand from this major oil importer. Furthermore, a weakening US dollar allowed other currency holders to buy crude oil at lower effective prices, providing additional support for price stability.
However, the market faced challenges from a usually well-supplied spot market and declining crude demands for December loading cargoes as refiners sought to reduce their crude inventories in anticipation of year-end tax considerations. Supply risks were also heightened by a tropical storm threatening production in the US Gulf of Mexico, although these concerns didn’t overpower an unexpected increase in US crude stocks, which indicated that supply remained robust.
Towards the end of the month, crude prices retained some resilience, fueled by increasing geopolitical tensions in Eastern Europe and temporary supply disturbances in the North Sea.
This period reflects the complexities of global fuel markets, where multiple factors both stabilize and destabilize prices, offering a nuanced look at how interconnected world economies are. Consumers may feel the pinch with upcoming price increases, but the broader economic indicators suggest that optimistic developments, particularly in Asia, might offer a silver lining for energy demand in the future.
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