Manila: Oil prices are projected to rise by as much as PHP1.40 per liter next week amid supply concerns.
According to Philippines News Agency, Jetti Petroleum President Leo Bellas detailed in a Friday advisory that diesel prices could increase by PHP1.20 to PHP1.40 per liter, while gasoline prices may see an uptick of PHP0.30 to PHP0.50 per liter. These projections are based on Asian benchmark prices and foreign exchange movements as of Thursday.
The anticipated hike in gasoline prices marks the third consecutive week of increases and the fifth for diesel. Bellas explained that concerns over tightening near-term supply are fueled by the temporary halting of production at two large oilfields in Kazakhstan and export constraints in the Black Sea, which are contributing to the upward pressure on oil prices this week.
Bellas also highlighted demand optimism from China due to better-than-expected economic growth data, alongside a stronger economic growth forecast for 2026 from the International Monetary Fund. Despite easing worries over potential supply disruptions from the Middle East, oil prices remain volatile because of ongoing concerns about a possible US military intervention in Iran.
Geopolitical tensions continue to significantly influence the prices of diesel and middle distillates. This is further supported by reports of a sharp rise in demand from the US and increased demand from Europe due to colder temperatures sweeping the continent.
