MANILA, Philippines -- Shares are likely to open higher Wednesday as the drop in oil prices overshadowed poor quarterly results of major US companies, boosting Wall Street.

A perceived decline in US oil demand and expectations that a hurricane pushing through the Gulf of Mexico would spare most offshore oil in the Gulf of Mexico sent light, sweet crude for August delivery down $3.09 to $127.95 a barrel on the New York Mercantile Exchange.

That was nearly $20.00 down from oil's record high of $147.27 in recent weeks.

"Softening oil prices will be the primary driver in the market, it will give some relief to investors," said Astro del Castillo, managing director at First Grade Holdings.

But trading will continue to be cautious as investors keep an eye on corporate results for the second quarter.

The composite index edged down 6.64 points or 0.3 percent to 2,409.98 on Tuesday.