Confluence of factors and geopolitical events propped global market sentiments which generally precipitated rise in oil prices.
Mixed oil price price adjustments seen
At a glance
There will be mixed price adjustments at the domestic pumps by Tuesday, May 23, but cost swings are expected to be relatively marginal, based on the calculation of the oil companies.
According to industry players, the price of gasoline will rise by P0.60 to P0.90 per liter; while diesel prices will increase by P0.40 to P0.70 per liter.
Conversely, the price of kerosene will be on a slight downtrend of P0.10 to P0.30 per liter as estimated by the oil firms.
Oil companies will be implementing the fresh round of cost movements on Tuesday (May 23) and it will be anchored on the swing of prices based on the Mean of Platts Singapore (MOPS) index, which is the pricing benchmark adopted by the country’s deregulated downstream oil sector.
Prior to next week’s price changes, a monitoring report of the Department of Energy (DOE) has shown that the weekly adjustments at the pumps since the start of the year resulted in a net increase of P4.20 per liter for gasoline; while there had been reduction of P5.65 per liter for diesel and P6.30 per liter for kerosene.
Following weeks of downward pressure on global oil prices, industry watchers had finally seen market prices tracking upside last week due to array of factors influencing market sentiments.
After its precipitous slide to $71 per barrel in recent weeks, Brent crude, which is the go-to pricing reference in determining oil prices worldwide as it chalks up about three-fourth of traded oil globally, had climbed back to $75 per barrel as of Friday (May 19) trading.
Ahead of the June 4 meeting of the Organization of the Petroleum Exporting Countries and its partner-producers (collectively known as OPEC+), Russia has reported compliance to its target of 500,000 barrels per day production cut. Essentially, that helped in lifting market wagers which then partly precipitated the rise in prices.
Around Asia, market watchers are also keenly monitoring developments in the Chinese market, primarily if there would be hike in its oil needs due to expanding industrial activities post-pandemic as that could prompt demand uptick.
For the United States, which is the biggest oil consumer, talks of impending enforcement of debt ceiling as well as reports of inventory drop so far provided succor to overall escalation in prices.