MANILA – Prices of gasoline products are projected to rise next week, unlike those of diesel, which are seen to decrease given the movement of the benchmark due to demand and the impact of external developments.
Jetti Petroleum president Leo Bellas, in a statement Friday, said gasoline prices are forecast to rise by PHP0.40 to PHP0.60 per liter next week, while diesel prices are expected to drop by PHP0.70 to PHP0.90 per liter.
“MOPS prices have seesawed during the first four trading days of the week, with diesel declining as demand appeared to be slowing down amid rising product availability, while gasoline remaining strong as the seasonal summer demand continues to rise,” he said.
The MOPS, or the Mean of Platts Singapore, is the benchmark of refined oil in Southeast Asia.
Bellas noted that in general, crude oil prices weakened this week on the prospect of the easing of sanctions on Russia should a ceasefire or peace deal occur during the meeting between US President Donald Trump and Russian President Vladimir Putin.
He said “bearish inventory and supply data, and worries of declining demand have also weighed on prices, with US crude and diesel inventories rising more than expected.”
He also cited the impact of the easing trade war issues after the decision of the US and China to extend the tariff adjustment pause, as well as the “demand optimism spurred by the prospect of a potential US interest rate cut in September.”
“The uncertainty of the US-Russia peace talks that could affect Russian oil exports continues to add a bullish risk premium, given that Russia and buyers of Russian oil could face more economic pressure should a deal doesn’t happen,” he added.
Fuel prices declined this week, a reversal of the adjustments in the previous week. (PNA)