Oil prices are likely to increase again next week due to developments in the global market, including the recent US-EU trade deal that reduced tariffs on European exports to the United States to 15 percent, as well as various supply-related factors.
Leo Bellas, president of Jetti Petroleum, Inc., cited the Mean of Platts Singapore (MOPS) benchmark for refined petroleum products and the foreign exchange average as of Thursday, indicating that diesel prices could rise by PHP 0.80 to PHP 1 per liter, while gasoline prices may increase by PHP 1.50 to PHP 1.70 per liter.
“The oil markets responded positively following the trade deal between the US and European Union, while the threat of US sanctions on Russia and buyers of Russian oil has also helped support oil prices this week,” Bellas explained to journalists on Friday.
He noted that diesel prices have continued to rise due to tightening supply, coupled with a larger-than-expected decline in US gasoline stocks, which supports the outlook for a strong driving season as peak summer demand surges.
Another contributing factor to the anticipated price increase is the weakness of the local currency. The peso depreciated to the 58-level on Thursday, just before the implementation of a 19 percent reciprocal tariff on Philippine exports to the US. However, the local currency gained some ground when it opened Friday’s trade at 57.86 against the US dollar.
Bellas pointed out that US protectionist policies have significantly influenced global markets for months, affecting price movements, supply chains, and inflation. “Recently, the tariff threats, news of extensions, and uncertainty surrounding countries yet to negotiate a trade deal with the US, along with the delay in interest rate cuts by the US Federal Reserve, have weighed on crude prices,” he added.
As a result, consumers should prepare for potential increases in fuel prices in the coming week.
