MANILA – Oil prices are projected to increase as much as PHP0.70 per liter next week as supply issues linger, a fuel company executive said, citing developments as of Thursday.
In a report Friday, Jetti Petroleum president Leo Bellas said diesel prices will likely rise between PHP0.50 to PHP0.70 per liter.
Gasoline prices, in turn, are forecast to be hiked by as much as PHP0.10 per liter, but at the same time are projected to be slashed by PHP0.10 per liter.
“While crude price benchmarks have eased down slightly week-on-week as demand weakened due to significant refinery turnarounds and worries of a potential supply glut, prices of refined fuel products have remained elevated due to supply concerns,” Bellas said.
He said the price of diesel at the Asian benchmark, the Mean of Platts Singapore (MOPS), rose, attributing this to tightening supply due to reduced outflows from Northeast Asia amid refinery maintenance shutdowns.
Inventories remain on the lean side for the near term as major regional refiners could potentially reduce output should producers lose access to cheaper Russian crude, he added.
Bellas said global diesel prices remain supported following Western sanctions on Russia, which is a major exporter of the middle distillate.
On the other hand, Bellas said the price of gasoline has weakened “as Asian supply is supported by higher runs from China due to fresh export quotas”, adding that losses are capped by firm regional demand.
“Furthermore, prices remain supported due to future crude feedstock supply uncertainties following US sanctions on Russia’s Rosneft and Lukoil. Also, gasoline supply concerns due to planned refinery turnarounds and unplanned outages in the region have put a floor on prices,” he said.
Oil firms increased gasoline prices by PH1.70 per liter and diesel by PHP2.70 per liter last Tuesday, the fifth consecutive week of increase for gasoline prices alone. (PNA)