MANILA — The Department of Energy (DOE) announced on Friday that oil companies are likely to reduce fuel prices next week.
Rodela Romero, director of the DOE’s Oil Industry Management Bureau, shared the expected changes:
Gasoline: Decrease of P0.50 to P0.75 per liter
Diesel: Decrease of P1 to P1.15 per liter
Kerosene: Decrease of P0.90 to P1 per liter
The anticipated price cuts come after oil prices fell due to Israeli Prime Minister Benjamin Netanyahu’s assurance to US President Joe Biden that Israel would not target Iran’s crude oil or nuclear facilities.
Earlier in October, fears of Iranian missile attacks on Israel caused crude prices to spike, raising concerns about potential disruptions to oil supplies. However, Netanyahu’s statements have eased some of those concerns, according to Matt Britzman, a senior equity analyst at Hargreaves Lansdown.
“With the geopolitical risk decreasing, prices are now influenced more by weaker demand,” Britzman explained. The International Energy Agency noted that global oil markets remain “adequately” supplied, aided by the end of a Libyan oil blockade, reduced demand, and only minor production losses from hurricanes in the US Gulf Coast.
Additional downward pressure on prices comes from worries about China, the world’s largest crude importer. China’s economy is struggling to recover, and investors are frustrated by the lack of specifics from Finance Minister Lan Fo’an regarding stimulus measures to revive growth.
“China urgently needs fiscal support due to weak domestic demand, deflationary pressures, and softer global demand,” said Rodrigo Catril, a senior strategist at National Australia Bank.
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