MANILA – Oil prices are seen to rise further next week partly on geopolitical developments overseas.
This is a turn-around for diesel prices, which declined by PHP0.80 per liter this week.
Jetti Petroleum president Leo Bellas, in a statement Friday, said diesel prices are seen to increase PHP0.20 to PHP0.40 per liter and gasoline prices by PHP0.40 to PHP0.60 per liter.
Bellas explained that the movement of oil prices in the Asian benchmark, Means of Platts Singapore (MOPS), was “relatively lower at the start of the week on the prospect that a peace deal in the war in Ukraine would ease sanctions on Russia and bring Russian oil back into global markets.”
“However, the uncertainty over the Ukraine peace talks has lifted oil prices due to growing concerns that tighter Western sanctions on Russia and additional US sanctions and tariffs on Russian oil buyers will disrupt supply flows,” he said.
He also noted that “freight and premium levels have remained elevated due to lingering geopolitical risks and concerns.”
“Demand optimism has also lifted sentiments following a large drop in US crude inventories and gasoline stocks, indicating steady to strong demand during the summer travel season,” he added. (PNA)