Anticipated increase in oil prices by PHP 1.20 per liter predicted for the upcoming week
In recent developments, oil prices are projected to increase next week, with gasoline expected to rise by PHP1 to PHP1.20 per liter, and diesel by between PHP0.60 and PHP0.80 per liter. This upward trend is attributed to a multitude of factors, including intensified attacks on Russia's ports and refineries, operational issues in major refineries, and rising concerns of a broader escalation of tension in the Middle East.
The attacks on Russia's ports and refineries have already impacted Russian supplies, contributing to the global oil supply constraints. Similarly, operational issues in major refineries have affected gasoline trade flows, further aggravating the oil price increase.
The Middle East, a region that is a significant player in the global oil market, has seen a rise in tension, which is supporting oil prices. Concurrently, the strengthening of crude oil and refined fuel products this week is due to worries about potential disruptions in Russian supplies due to increased aggression in the Russia-Ukraine war.
However, demand worries due to signs of a slowing US economy are pressuring prices and offsetting some of the supply concerns. A larger-than-expected rise in the US distillate stockpiles raised concerns about demand in the world's top oil consumer.
Additionally, the higher demand for diesel in Northern Hemisphere countries as autumn approaches is further fueling the oil price increase. Upcoming refinery turnarounds are expected to tighten supply, potentially exacerbating the situation.
It's worth noting that the president of Jetti Petroleum, Leo Bellas, has been linked to operations related to the Philippines, as he is cited in multiple recent reports about fuel and oil prices there. This suggests that his professional activity or residence may be connected to the Philippines.
The higher demand and supply constraints due to damage in Russian refineries and export facilities have tightened the supply outlook, contributing to the overall increase in oil prices. Despite these challenges, it's crucial to monitor the market closely for any shifts in demand or supply dynamics that could impact prices in the near future.
Read also:
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- Hydrogen Energy: Sustainable Innovation or Resource Exploitation?
- Dim outlook for a major energy corporation
