Pump prices will have a mixed movement next week, with oil companies rolling back diesel and kerosene prices and increasing gasoline prices, sources told Manila Standard.
The sources said gasoline may go up by P0.40 to P0.60 per liter, while diesel will roll back P1.20 to P1.40 per liter and kerosene by P1.10 to P1.20 per liter.
This is based on the four-day monitoring on the Mean of Platts Singapore (MOPS), the pricing bench used by oil importers, they told the Standard.
This developed after the oil firms rolled back pump prices by P3.05 per liter for gasoline, P3 per liter for kerosene, and P2.45 per liter for diesel on Oct. 10.
These price adjustments resulted in a year-to-date net increase of P12.25 per liter for gasoline, P11.35 per liter for diesel, and P5.94 per liter for kerosene.
Department of Energy (DOE) director for the oil industry management bureau Rodela Romero said oil markets have eased despite the ongoing Israel armed conflict.
“Saudi Arabia is truly balancing by preparing to ship full volumes required by its North Asian customers, notwithstanding its output cuts. Added is the easing of sanction on Venezuela, allowing more of its crude into the market,” Romero said.
The DOE previously warned that oil prices may continue to go up until the end of the year if supply constraints worsen due to the Israel attacks.
“If we base it on the global Platts, up to the end of the year there will be a small deficit in world supply versus world demand. If demand goes up, prices goes up,” Romero said earlier.
She said demand has been going up versus supply, although demand sometimes go down due to higher interest rates, stronger US dollar and weak economic activities.
Romero said the outlook becomes different especially when there are issues such as the Israel war.
She said analysts are not expecting a long-term effect from the Israel attacks on the global oil market, unless it escalates and spreads to its neighboring oil-producing countries.
“We do not source from Israel but its surrounding area in the Middle East. Iran is still on sanction and Iran is not the only big producer,” she said.
Romero said the US and Saudi Arabia are the biggest producers of oil that can affect the global trend.
“If it escalates, it can have an effect because market uncertainties drive up prices,” she said.