Domestic oil prices will likely decrease by as much as P5 per liter this week, given market developments reflecting the situation in the Middle East.
Oil companies announced over the weekend that prices of diesel could go down by P4 to P4.95 per liter, gasoline by P3.90 to P4.90/L, and kerosene by P4 to P5/L, effective tomorrow, Aug. 11.
Exact adjustments will be known today, Aug. 10.
“Oil prices retreated as renewed hopes of a diplomatic breakthrough to the US-Iran conflict eased the geopolitical risk premium, despite the lingering uncertainty and persistent risks to Red Sea shipping,” Jetti Petroleum president Leo Bellas said in a message to reporters Friday.
He said that crude oil prices decreased, resulting in a sharp drop in both diesel and gasoline prices in Asia “as easing geopolitical risks reduced the recent supply premium.”
“The stronger (Philippine) peso (last week) against the US dollar helped put more downward pressure on domestic prices,” he added in a Philippine News Agency report, noting that amid the latest oil price rollback, “fundamentals remain relatively firm due to strong demand amid tightening supply as the continuing disruption to Middle East exports through the Strait of Hormuz and from Saudi Red Sea ports limit the availability of feedstock for Asian refiners.”
Further downside is capped due to concerns over tightening global supply pool as Russian product outflows continue to decline, he said. “Continued supply disruptions and conflicting political statements from the US and Iran are keeping prices volatile, with increasing upside risk. ||
