Mon, Sep 24, 2012 - Page 13 News List

Saudi plan spurs oil cuts

By Lisa Wang  /  Staff reporter

State-owned oil refiner CPC Corp, Taiwan (CPC, 中油) yesterday announced the deepest price cuts in about two years as global crude prices dropped due to a crude output capacity expansion plan by Saudi Arabia.

CPC will slash prices for its gasoline and diesel products by NT$0.8 per liter and NT$0.9 per liter respectively, according to a company statement posted on its Web site.

Global crude prices slid 3.18 percent to US$110.68 per barrel last week from the previous week’s US$114.31 per barrel. Based on CPC’s pricing mechanism, that would result in a 3.10 percent price reduction, the statement said.

Formosa Petrochemical Corp (台塑石化), a privately run oil refiner, said it would make the same cuts.

Formosa said weak economic data from China, doubts about the US Federal Reserves’ new round of bound buying and higher-than-expected US crude reserves have led to decline in global crude prices.

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