Mixed oil price movements forecast for next week

MANILA – Another mixed path is projected for domestic oil prices next week, this time, a possible hike is likely for diesel due to global supply concerns.

Citing price and foreign exchange developments as of Thursday, Jetti Petroleum president Leo Bellas, in a message to journalists on Friday, said diesel prices may rise by PHP0.20 to PHP0.40 per liter, but gasoline prices may decline by PHP4 to PHP4.20 per liter.

This is a possible reversal of the price adjustments since last week, when diesel prices declined and gasoline prices rose.

Bellas explained that diesel prices “rose as low global inventories persisted but further increase is tempered by the prospect of additional supply from Russia and release of diesel stocks from G7 nations, although doubts remain whether the US-Russia diesel deal will deliver meaningful additional supply.”

He, meanwhile, traced the possible rollback in gasoline prices to “easing supply concerns in Asia and improving gasoline availability as refineries return from turnaround.”

“Heightened supply concerns, as shipping disruptions in the Strait of Hormuz and attacks by Houthis on Saudi Arabia continue, have caused oil to rise,” he said.

“However, increased Gulf oil flows and output from Russia, emergency stock releases, and possible easing of restrictions by the US on sanctioned vessels that could lower freight costs have put a lid on prices.” (PNA)