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Oil price upsurge seen at P1.3/liter

The oil distributors may implement a price increase of as much as P1.30 per liter on Tuesday as the world’s oil markets react to the drone attack on Saudi Arabia that is likely to affect the global oil supply.

“Expect fuel prices to go up next week [September 17 to 23, 2019]. Diesel should go up by P0.70-P0.80 per liter and gasoline should go up by P1.20-P1.30 per liter,” Unioil Philippines said in its weekly price forecast.

On Saturday, drones attacked Saudi Arabia’s Khurais oil field and a processing facility in Abqaiq, and the kingdom announced that 5.7-million barrels of crude and gas were affected by the attack.

Saudi Arabia is the world’s biggest oil producer.

Analysts have raised fears that the damage could push up prices by as much as $10 per barrel of oil. Others fear it could bring global oil prices to as much as $100 per barrel.

The forecast oil price increase would end three consecutive oil price cuts due to the impact of the US-China trade war.

On Sept. 7 to 19, the oil companies implemented a price cut of P0.50 per liter of gasoline, P0.10 per liter of diesel and P0.25 per liter of kerosene.

The Energy department has said the year-to-date adjustments now stand at a net increase of P4.16 per liter of gasoline, P3.17 per liter of diesel and P1.01 per liter of kerosene.

Topics: oil market , Unioil Philippines , Department of Energy
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