World oil prices up over drop in supply

Thursday May 16 2019

By Josephine Christopher @JocfineQ

Dar es Salaam. World oil prices for both crude oil and white petroleum products increased in March 2019 as a result of a rise in global demand coupled with limited supply in the world market.

According to the monthly economic review report by the Bank of Tanzania (BoT), world market prices of all selected commodities decreased, with the exception of oil and cotton.

Average price levels of crude oil from Brent, Dubai and West Texas increased by 21.7 per cent in March 2019 to $ 67.8 from $55.7 per barrel recorded during the corresponding month in 2018. Prices of oil from free on board Dubai and under grade increased to $69 from $55.9 per barrel.

On the other hand, prices of white products (diesel and kerosene) also went up by 22.6 per cent from $545.9 to $669.5 per ton.

The central bank stated that, “Crude oil and white petroleum products increase was supported by rise in global demand coupled with supply cuts following OPEC3 plus OPEC’s cooperation with non-OPEC oil producers—production cut deal and USA sanctions on Iran and Venezuela.”

However, domestically the price of petrol was lower in March 2019 than in the corresponding month of 2018, while those of diesel and kerosene were generally higher.

Petrol prices went down to Sh2,207.8 in March 2019 from Sh2,302.1 in the corresponding month in 2018. The price was also lower compared to the preceding month which was Sh2,257.2.