Oil prices to be rolled back this week

INQUIRER FILE PHOTO

MANILA, Philippines — Fuel prices are dropping starting Tuesday (July 29) as crude supply continues despite conflict in oil producing countries.

Oil prices are dropping significantly for the week as based on MOPS index, global price movements are different for each product.

As of Monday afternoon, Petron, Shell, and Seaoil have said in separate advisories that from 12:01 a.m. July 29, they will impose a rollback of P1.20 per liter for gasoline, P0.25 for diesel, and P0.20 for kerosene. PTT Philippines has said it will implement similar changes for gasoline and diesel.

Phoenix Petroleum has said it will impose similar price cuts for gasoline and diesel starting 6 a.m. Tuesday.

It was the third weekly decline for gasoline.

Including the price movements this week, the year-to-date total adjustments stand at a net decrease of P2.90 per liter for diesel and P0.75 to P0.70 per liter for gasoline.

Despite short-term supply concerns, there remains downward pressure on prices as demand is sluggish while long-term supply seems stable with the U.S. shale boom adding to Middle East supply, according to analysts.

The International Energy Agency has forecast that U.S. oil output will continue to surge — something that will put a damper on oil prices globally as Washington’s dependence on crude imports drops.

Developed economies are showing uneven growth in terms of oil demand while emerging markets remain well supplied.

For several weeks now, crude prices have been in turmoil over conflicting expectations on Middle East production. Sectarian violence in Iraq and Libya have curbed oil exports but Iran, at least, is seen to potentially boost production.