Oil prices expected to go up again in third week of February

MANILA, February 14 ------ Oil prices are once again expected to increase in the third week of February due to the geopolitical tensions between the United States and Iran, the Department of Energy (DOE) said.

Based on the four-day trade monitoring in the Means of Platts Singapore, DOE Oil Industry Management Bureau Assistant Director Rodela Romero said the following increases could be expected next week.

- Gasoline – P0.95 per liter

- Diesel – P0.10 per liter

- Kerosene – P0.25 per liter

Romero said these still excluded premium operating costs, which could reach up to P0.40 to P0.50 per liter. The DOE official explained that the looming oil price hike was caused by the fear of possible supply disruption should the Strait of Hormuz, a major transportation route in the Middle East, be closed down.

The US government also threatened to intercept tankers carrying Iran oil, Romero said. “Lahat iyan nagko-contribute para tumaas yung tinatawag na risk premium sa pag-angkat ng produktong petrolyo,” Romero said. "Sa halip na normal lang, natatabunan yung fundamentals ng supply and demand. Marami tayong supply, pero dahil sa takot o risk na ito, tumataas ang presyo," she added.

The official noted that Iran ranks third among global oil suppliers under the Organization of the Petroleum Exporting Countries (OPEC). The United States, meanwhile, produces the largest amount of oil among all countries. But its supply is scarce compared to its demand, prompting it to import from other oil-producing countries. “Kaya minsan, kapag naapektuhan yung oil trade ng USA, tumataas ang presyo kasi makikiagaw siya sa supply ng mundo,” Romero said.

DOE assured that the agency continuously monitors local price adjustments to ensure they are solely due to changes in the global oil market, and not abuse. The agency said it also inspects gas stations to ensure the oil supply complies with standards on quality.

Source: news.abs-cbn.com