EFFECTS from the recent conflict between Iran and the United States (US) has not yet been felt in Davao City, according to the Davao City Chamber of Commerce and Industry, Inc. (DCCCII).
“There is a risk that it might affect oil prices but we are still not seeing that effect,” DCCCII president John Carlo Tria said at the sidelines of Habi at Kape press conference.
He said the chamber has been closely monitoring the possible changes in the local economy which will be brought about by the looming conflict between Iran and the US.
“We just hope that it will be resolved sooner rather than later because of the effect on our OFWs [Overseas Filipino Workers],” Tria said.
The important thing, for now, is we will work with the government to make sure that whatever the effects are mitigated and managed,” he added.
Tria said they will discuss and prepare possible contingencies if necessary.
European Chamber of Commerce of the Philippines- Southern Mindanao Business Council (ECCP-SMBC) executive director Antonio Peralta is optimistic the tension will subside sooner.
“I don’t think the situation...will be long-term,” he said.
“I think there is a greater sense that they have to resolve this because there is so much at stake especially because our economies are interdependent with each other and the last thing that you will ever see is that, you would see the entire global economy collapse because of this,” Peralta added.
He said the country still has enough oil reserves to cushion the possible economic effects of the ongoing conflict.
“I am sure that there will be meetings between the different chambers and the government on how to address this,” he said.
The Department of Energy (DOE) noted an increase in the oil price after US president Donald Trump killed Iran’s top military general Qasem Soleimani.
“Dubai crude has increased week-on-week by almost US$0.10 per barrel. MOPS (Means of Platts Singapore) diesel has also increased by around US$1.05 per barrel while on the opposite MOPS gasoline has decreased by nearly US$0.20 per barrel,” DOE stated as of January 8, 2020.
The adjustments, according to DOE, was observed on the morning of January 3, when news about US-led airstrike killed Iranian General Qassim Soleimani, leader of the Iranian Revolutionary Guard’s foreign wing, in Iraq, broke out.
“The heightened geopolitical tension in the Middle East and potential escalation of hostility between the US and Iran further threatens to affect global oil output,” DOE said.