An oil firm official yesterday cited the possibility of a break in gasoline price increases next week, given the price movements as of Thursday.
Citing movements of benchmark prices and the foreign exchange, Jetti Petroleum president Leo Bellas, in a statement, said gasoline prices would likely decline by P0.10 per liter but might also rise to as much as P0.10 per liter.
Diesel prices, in turn, are forecast to rise between P0.30 and P0.50 per liter.
Bellas explained that “Singapore diesel price continued to mirror the strength in the European market, which drives global diesel demand trade,” referring to the Means of Platts Singapore (MOPS), the benchmark in the Asia Pacific.
“Expectations of supplies tightening amid upcoming refinery turnarounds continue to support diesel fundamentals, as well,” he said.
Bellas also noted that “gasoline demand is seen easing as summer driving season comes to a close, but planned maintenance at major refineries is expected to tighten supply.”
“While the average price of crude oil this week is still slightly lower compared to last week, prices have been on an uptrend due to concerns that the potential new sanctions on Russia and expansion of secondary tariffs to its major buyers could disrupt Russian crude exports and tighten global supply,” he said.
Geopolitical tensions are also affecting prices, he said, citing Israel’s attack in Doha, Qatar on Tuesday and Poland’s shooting of suspected Russian drones over its airspace late Tuesday until early Wednesday.
These factors are, however, countered by the “latest oil output increase from OPEC+, being smaller than anticipated.”
“But oversupply worries and concerns over demand slowing down are putting pressure on prices, which is seen to offset the perceived supply shortage due to a rise in tensions in the Middle East and Ukraine,” Bellas added.
Domestic oil prices rose for the fourth consecutive week this week between P1 and P1.40 per liter.*PNA
