Consumers will have to brace for a big-time oil price hike next week, with as much as P1.40 per liter due to optimism over the US-China trade deal and falling crude inventories.
This will be the third consecutive oil price hikes for gasoline and diesel amid volatility in world oil prices.
Department of Energy Oil Industry Management Bureau (OIMB) director Rodela Romero said that based on the four-day trading in the Mean of Platts Singapore (MOPS), the pricing benchmark for oil importers, the country will experience another round of oil price hikes next week.
Romero said gasoline prices may go up by P0.90 to P1.40 per liter, diesel by P1 to P1.40 per liter and kerosene by P1 to P1.20 per liter.
Factors that pushed up oil prices includes the positive US – China trade signals, the stalled US – Iran nuclear negotiations and the expected growth in oil demand until the next 2 1/2 decades based on the statement of the Organization of the Petroleum Exporting Countries’ Secretary General.
Jetti Petroleum president Leo Bellas said oil prices have remained elevated this week on optimism around the US-China trade deal, which could support the global economic outlook and boost energy demand in the world’s two biggest economies.
“The demand optimism has outweighed worries about increased supply as OPEC+ further unwind its production cuts, with higher oil demand seen within OPEC+ economies over the coming months could offset the additional supply from the group and support oil prices,” he said.
Bellas said pessimism over US-Iran nuclear talks also provided support.
“The geopolitical risks in the Middle East have pushed prices higher as the escalating US-Iran tension raised fears of supply disruption. Falling US crude inventories has also buoyed prices, and Asian gasoline and diesel price benchmarks remained supported amid the summer demand season as outflows from China have remained contracted due to the ongoing refinery turnarounds,” he said.
Bellas cited increased concerns of escalating tensions in the Middle East that could disrupt oil supply.
