Oil firms cut prices as Syria talks move

MANILA, Philippines—Local oil firms lowered their pump prices for diesel and kerosene on Saturday as market concerns on possible supply disruptions in the Middle East and Africa eased following United Nations intervention to get Syria to relinquish its chemical weapons.

Petron and Shell cut the prices of their diesel and kerosene by 50 centavos per liter and 60 centavos per liter, respectively, effective 12:01 a.m. Sunday.

Independent oil player Seaoil implemented similar price cuts at the same time. PTT Philippines also shaved off 50 centavos per liter from its diesel products after midnight on Sunday.

Including the latest oil price rollbacks, the year-to-date net increase in the price of diesel has dropped to P1.88 per liter, while that of gasoline has been moderated to P1.24 per liter.

Oil futures slipped for the third straight week on Friday, signaling prospects for softer oil prices this week. This, as US and Russian officials reached a deal to strip Syria of its chemical weapons. The looming government shutdown in the United States (unless a budget deal is sealed before the new fiscal year starts on Tuesday) was also on traders’ watchlist but analysts said this could play a smaller role than is generally thought.

In theory, prospects of a US government shutdown raises concerns of weak demand that could depress oil prices, but oil prices actually climbed the last time the US government closed shop from Dec. 16, 1995 to Jan. 6, 1996. Riza T. Olchondra