Energy dept tells oil firms to beef up inventory as world crude prices rise

ABS-CBN News

Posted at Oct 05 2021 04:03 PM

MANILA - The Department of Energy on Tuesday ordered oil companies to ensure they have enough inventory as world crude prices continue to rise.

Energy Secretary Alfonso Cusi said oil firms need to comply with the DOE's Minimum Inventory Requirements. 

“I am directing all oil companies in the country to ensure adequate supply, and come up with plans to mitigate possible price hikes of oil products in the coming months," said Cusi.

The DOE said oil companies and bulk suppliers should maintain a minimum inventory equivalent to 15 days for refined products. The minimum inventory for LPG meanwhile is at 7 days, DOE said. 

Refiners, meanwhile, are required to maintain a minimum inventory of 30-days worth of crude oil and refined products. 

According to the DOE, global oil demand is expected to reach as much as 103 million barrels per day (mbpd), when supply is currently only at about 103.22 mbpd. 

The DOE said geopolitical events continue to constrain supply while demand is seen picking up due to increased economic activity in the fourth quarter, especially in developed nations. 

"The DOE will continue to closely monitor global oil supply and price movements," Cusi said.

Watch more News on iWantTFC