Department of Trade and Industry (DTI) Secretary Alfredo Pascual is confident that the recent announcement of Saudi Arabia that it would cut down on oil production would not necessarily lead to an increase in the prices of basic commodities in the country. Trade Secretary Alfredo Pascual (RTVM screenshot) Though he admitted during a Palace briefing on Tuesday, June 6, that the likely increase in crude prices arising from the Saudi oil production cutback would have an “impact”, he maintained that it might not result in higher prices of basis commodities. Saudi Arabia’s slashing of crude output jacked up oil prices last weekend. “May impact iyan, siyempre kapag tumaas iyong price ng oil. Pero ang tingin ko nga, baka hindi naman mag-resulta ng pagtaas overall.  Kung hindi name-maintain lang where it is na para hindi na bumaba (That has an impact, of course, when price of oil increases. But in my opinion, it might not result to an increase overall. Instead, it will maintain where it is so as not to decrease),” he told reporters. Pascual explained that Saudi Arabia, one of the world’s major producers of oil, decreased its oil production as a “defensive move” so oil prices won’t further go down. “Puwede ring hindi mag-resulta ng increase, pero hindi na bababa ng lower level (It might not result to an increase, but it won’t decreased to a lower level),” he added. The DTI chief also raised the possibility that Saudi Arabia might decide on cutting back further on its crude production if oil prices continue to go down. Oil producers, he said, must balance the supply and demand vis-a-vis the prices of oil in the market. “Ganoon naman iyon eh, supply and demand kung mataas iyong supply compared sa demand, mababa ang price. Kung mas mataas iyong demand kaysa sa supply tataas ang price ‘no (It’s like that, supply and demand if supply is higher compared to demand, the prices are lower. If the demand is higher than the supply, prices will increase),” Pascual added. Saudi Arabia with members of members of the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other smaller producers announced that it would slash oil output by another one million barrels per day in an effort by OPEC+ members to shore up oil prices. The recent announcement means Saudi Arabia would only produce nine million barrels of oil per day, the biggest cut in years. This came after a meeting in Vienna on Sunday, June 4, wherein OPEC+ members agreed to continue depressing output until next year.