The next major development that could influence swing of oil prices in the world market would be the scheduled June 4 meeting of the OPEC+ alliance.
Oil price rollback on Tuesday seen
At a glance
There will be a fleeting moment of financial relief on consumers’ pockets next week, as prices at the domestic pumps will be on rollback, based on the calculation by oil companies.
According to the industry players, the price of gasoline products will be trimmed by P0.45 to P0.75 per liter; while diesel prices will go down by P0.25 to P0.55 per liter.
Additionally, kerosene prices will be slashed by P0.35 to P0.65 per liter when prices are adjusted at the petroleum pumps on Tuesday (June 6).
The downswing in prices had been anchored on the outcome of trading in the regional market last week, as referenced on the Mean of Platts Singapore (MOPS), the pricing parameter being employed in the deregulated downstream oil industry of the country.
This wave of decline in prices followed fluttering cost movements in the past two weeks, as the market compass has been swinging in either direction due to array of economic and geopolitical events ruffling supply-demand dynamics.
Despite lower trading prices last week, however, they weren’t still hitting bargain-basement, hence, the price reduction to be experienced by consumers next week will not exactly be that significant.
Additionally, commodity trading in Singapore was cut short just until Thursday, June 1, because of their Vesak Day on Friday, June 2, the date when oil prices in the global market started climbing back again.
The main factor that buoyed market sentiment in the oil industry was the lifting of the US debt ceiling, a major political decision that took the edge off on default uncertainties that could have blighted the world’s biggest economy.
It was similarly reported last week that the crude inventory of the US has been rising, while China’s manufacturing sector on a "weakening mode" – and both developments had been seen easing pressure on international prices.
Onward, the most awaited development by market traders and watchers will be the outcome of the June 4 meeting of the Organization of the Petroleum Exporting Countries and ally-producers (OPEC+), although there is general expectation that they may not opt for a decision to deepen production cuts.