Another oil price rollback likely next week
At A Glance
- Based on the four-day trading at Mean of Platts Singapore (MOPS), gasoline could see a minimal drop of around ₱0.30 to ₱0.75 per liter, while diesel and kerosene are seen to pull down their prices at a peso range.
Another week of May could bring forth another round of fuel price drops.
Based on the four-day trading at Mean of Platts Singapore (MOPS), gasoline could see a minimal drop of around ₱0.30 to ₱0.75 per liter, while diesel and kerosene are seen to pull down their prices at a peso range.
Next week, diesel could decrease somewhere between ₱0.90 and ₱1.35 per liter, while kerosene may slash prices by ₱1.30 to ₱1.45 per liter.
An increase in global oil production and a positive outlook on world trade talks signaled these fuel price cuts, according to analysts from the Department of Energy’s (DOE) Oil Industry Management Bureau (OIMB) and Jetti Petroleum.
“OPEC+’s decision to increase June oil production levels, combined with United States (US) or global tariff uncertainty has raised concerns about a possible supply glut,” said Rodela Romero, OIMB director.
OilPrice.com further reported that Kazakhstan, which is part of OPEC+, will not pause its crude production this month and may even surpass the organization’s quota.
The report noted that Kazakhstan produces 1.468 million barrels of crude oil per day (bpd) under the OPEC+ agreement. However, since it has the condensate output, Kazakhstan will continue producing more.
Zooming out of OPEC+, Romero noted that the world’s biggest oil buyers are pushing for negotiations, citing that there is an “uncertainty over the outcome of trade talks between the US and China, the world’s two largest oil consumers.”
Others remain positive on the outlook, as Jetti Petroleum President Leo Bellas said that the US-China trade deal talks are “seen to support prices on the last trading day of the week and consequently reduce the potential rollback in domestic fuel prices next week.”
In early May, consumers enjoyed the month’s first oil price rollback due to supply increase; however, Bellas expressed caution on the demand side.
“Oil prices have dropped significantly at the start of the week due to oversupply concerns after OPEC+’s decision to boost oil output, but have since rebounded on signs of higher demand in Europe and China, fears of lower US oil production and tension in the Middle East,” he elaborated.