By Myrna Velasco
It will be a reverse course for pump prices this coming week with slight increases anticipated to range between P0.15 to P0.40 per liter for diesel and gasoline products.
This is due to the uptick in prices in the world market logged in the outcomes of recent trading days, according to the industry players. Basically, this will be an opposite development from the massive price cuts experienced just last week.
In the coming days, the hike in diesel prices is seen to be leaner at P0.15 to P0.20 per liter; while gasoline could be at the range of P0.35 to P0.40 per liter as of Thursday, not yet factoring in the result of trading on Friday.
Oil companies are expected to adjust pump prices until Tuesday (June 18) which is also aligned with the recently issued Circular of the Department of Energy.
As tracked by industry watchers, world oil prices had been on a rally last week due to fresh round of tension in the Middle East, primarily the assault on tankers in the gulf of Oman.
It was noted that such single geopolitical event partly disrupted supply flow, hence, triggering the price escalations especially on last week’s Thursday trading.
Nevertheless, the general expectation is for prices to remain relatively low with other factors, such as the lingering US-China trade dispute, still seen precipitating slowdown in overall global economic growths.
Another major event closely being monitored is the forthcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and the Russia-led league of producers which is happening last week of June in Vienna, Austria.
Market speculations abound that Russia may no longer concur to ‘production cuts’ as strategy to lift sagging oil prices, hence, that will also impact significantly on oil supply-demand dynamics moving forward.
The so-called Vienna alliance of OPEC and non-OPEC producers had embraced that market rebalancing strategy since 2015, but there had not been much success in terms of preventing fall in global oil prices.