MANILA – Oil prices are expected to increase as high as PHP1 per liter next week as upside risks remain partly due to supply disruptions, according to an industry player.
Based on the price movements as of Thursday and the performance of the foreign exchange, the outlook for next week points to about a PHP0.80 to PHP1 rise in diesel prices and up to PHP0.10 rise in gasoline prices.
Jetti Petroleum president Leo Bellas, in a statement, said “middle distillate prices (diesel, jet, kerosene) remained strong on firm fundamentals as concerns over supply tightness continue to persist due to reduced outflows from Northeast Asia amid refinery maintenance and unplanned outages, and persistently limited exports from China.”
He said Russian supply disruptions remain a major factor in the tight distillate markets.
On the other hand, Bellas said Asian gasoline prices have eased down this week as regional demand showed signs of slowing down.
“Further adding to the bearish sentiment is the significant increase in US gasoline inventories for the first time in over a month, a sign of slowing consumption in the world’s biggest economy,” he said.
“The potential impact of the November 21 US sanctions on Russian oil majors Lukoil and Rosneft, as well as the renewed push by the US to end Russia’s war on Ukraine are major factors that could influence the movement of prices in the coming trading sessions.”
If the projected hike in diesel prices will materialize next week, it will be the fifth consecutive week, while it is the eighth for gasoline.
This week, both the diesel and gasoline prices increased by PHP1.20 per liter. (PNA)