MANILA, Philippines—Oil prices may rise slightly this week amid lingering supply concerns and despite signals the US transport sector might be on a downtrend.
AP FILE PHOTO
Industry sources said the price increase would be under 50 centavos per liter. Some gave more specific numbers, saying diesel may go up 20 to 25 centavos per liter while gasoline may rise by 15 centavos a liter. Others said gasoline and diesel will both increase “by 15 to 30 centavos per liter.”
Continuing concerns of a potential oil supply disruption in Europe is driving oil prices. Traders have been saying the escalation in tensions between Russia and the Ukraine could push the United States and the European Union to impose sanctions on Russia, whose dominant trade is in energy.
It has also been reported that civil unrest has disrupted production and shipments from Libya, which has Africa’s largest crude reserves and is a member of the Organization of Petroleum Exporting Countries.
Also, consumer sentiment has declined as retail and entertainment giant Amazon reported lower profit amid rising shipping costs and car company Ford delivered 39 percent less profit in the first quarter.
The drop in Ford sales in the US in particular signaled that consumer spending on transportation in the world’s top fuel-consuming economy might not remain as strong as expected.—Riza T. Olchondra
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