Oil prices will likely go down effective Tuesday next week by as much as P2.85 per liter due to the continuing fears of a global economic slowdown.
Sources estimated the rollback in local pump prices at P2.85 per liter for diesel, P2.34 per liter for kerosene, and P1.23 per liter for unleaded gasoline for the three-day trading period (Monday to Wednesday).
This followed the rollback implemented by the oil companies on August 9 at P2.10 per liter for gasoline, P2.20 per liter for diesel, and P2.55 per liter for kerosene.
These resulted in total year-to-date adjustments at a net increase of P17.55 per liter for gasoline, P30.15 per liter for diesel, and P24.75 per liter for kerosene.
According to the Department of Energy’s latest monitoring report, crude prices fell last week amid heightened fears of recession and demand destruction due to fiscal tightening and rising US-China tensions.
The growing friction between the United States and China due to US House Speaker Nancy Pelosi’s visit to Taiwan may impact supply chains and demand, which could keep the inflationary pressures going strong further, adding downward pressure to crude prices, sources told the Standard.
Other bearish factors include interest rate hikes from the US Federal Reserve and rising inflation.
The price decline was tempered by bullish factors like dwindling OPEC+ spare capacity and concerns about Russian gas supply to Europe.