Taipei , July 23 ( CNA ) Formosa
Petrochemical Corp . ( 台 塑石 化) , a
privately owned fuel supplier, said
Saturday that it will lower diesel
prices next week after
international crude oil prices
trended lower this week .
The fall in international crude oil
prices reflected concerns over a
supply glut in the global market in
the wake of the weakness of the
world economy , prompting
Formosa Petrochemical to lower
fuel prices again, market analysts
said .
From 1 a .m . Monday , domestic
diesel prices at Formosa
Petrochemical ‘s gas stations will
drop by NT $ 0. 1 ( US $ 0 .003 ) per
liter, while its gasoline prices will
remain unchanged. The latest
adjustment came after the oil
supplier lowered gasoline and
diesel prices by NT$ 0 .4 per liter
this week.
International crude oil prices
initially moved higher this week
due to the shock of an attempted
coup in Turkey , but the impact
from this non -economic factor was
offset by renewed fears over a
global oversupply , the analysts
said .
Energy traders turned bearish
about the oil market after the
International Monetary Fund
downgraded its forecast for global
economic growth by 0 .1
percentage points to 3 . 1 percent
for 2016 after taking the Brexit
vote into account , the analysts said ,
adding that the downbeat forecast
pushed down international crude
oil prices .
Crude prices moved down even
further since the United States
reported that its oil rig count rose
for the fourth consecutive week ,
which added concerns to a supply
glut, analysts said .
In addition, the U. S. Energy
Information Administration said
that although production in the
U.S . market has been falling, crude
inventories still stayed at 519 . 5
million barrels, historically high for
this time of year. The oil stocks
made energy traders even more
worried .
Overnight, U .S . West Texas
Intermediate ( WTI) crude in New
York ended down 1. 3 percent at US
$44 .19 per barrel. For the week,
WTI crude lost 3. 8 percent.
After the adjustment , fuel prices at
Formosa Petrochemical gas stations
islandwide will fall to NT$ 19. 8 per
liter for super diesel , while the
prices will stay unchanged at NT
$22 .6 per liter for 92 octane
unleaded, NT$ 24. 1 per liter for 95
unleaded and NT $26 .4 per liter for
98 unleaded .
The company’s major competitor,
state- owned CPC Corp ., Taiwan ( 中
油) , is expected to announce similar
price adjustments at noon Sunday.