Middle East tensions flare again, international oil prices mixed
CPC Corporation, Taiwan announced on October 31 that from 00:00 on November 2 to November 8, gasoline and diesel prices will remain unchanged, marking the 7th consecutive week of frozen prices. The move was attributed to claims by Yemen's Houthi armed group that it attacked Saudi Arabian refineries with missiles, adding fresh uncertainty to the Middle East situation, along with a decrease of about 1.9 million barrels in U.S. commercial crude inventories, leaving international oil prices mixed.
Yemen's Houthi armed group recently attacked the Ras Tanura refinery in Saudi Arabia with ballistic missiles. The plant has a daily processing capacity of about 550,000 barrels, and the resulting fire has raised market concerns that the United States could resume attacks on Iran, adding new risks to Middle East oil supply. Although Turkey, Saudi Arabia and Pakistan traveled to Tehran, capital of Iran, in an attempt to push for resumed security talks and ease market tensions, supply concerns remain.
U.S. crude inventories fall for 4th week to 12-week low
According to the U.S. Energy Information Administration, for the week ended October 23, U.S. commercial crude inventories decreased by about 1.9 million barrels to 410.6 million barrels, down for the 4th consecutive week and hitting a 12-week low. As of October 30, New York West Texas Intermediate December futures closed at US$104.12 per barrel, up 0.82% on the week; London Brent December futures closed at US$113.43, down 2.82% on the week; Dubai crude fell to US$115.25, down 3.26% for the week.
Government expands absorption, keeps lowest prices among Asian neighbors for 7th week
Starting November 2, CPC prices are NT$31.2 per liter for 92-octane unleaded gasoline, NT$32.7 for 95 unleaded, NT$34.7 for 98 unleaded, and NT$29.9 for super diesel. Formosa products also remain unchanged, at NT$31.2 for 92-octane unleaded gasoline, NT$32.7 for 95+ unleaded, NT$34.7 for 98 unleaded, and NT$29.7 for super diesel, with actual prices subject to announcements at each station. CPC said that to support domestic livelihoods and stabilize prices, after a comprehensive assessment, the government is expanding commodity tax reductions, absorbing NT$3.7 and NT$2.1 for gasoline and diesel respectively, and to maintain the lowest prices among neighboring Asian countries and continue implementing the US-Iran war special stabilization mechanism, will additionally absorb NT$7.9 and NT$9.8 from November 2 to November 8, for combined absorption of NT$11.6 and NT$11.9 for gasoline and diesel respectively. From February 28 to November 1, CPC has expanded absorption totaling about NT$31.86 billion for gasoline and diesel under the special stabilization measures.