Oil prices surge amid ME conflict
The balance between global oil supply and demand is presently unequal, which also adds to the fear of sustained price hikes
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The balance between global oil supply and demand is presently unequal, which also adds to the fear of sustained price hikes
With the war in Israel, Filipino consumers have been warned of possible higher fuel prices until the end of the year.
Speaking at a public press briefing on Tuesday, Oil Industry Management Bureau Assistant Director Rodela Romero said the first oil trading of the week immediately went up by around $3 to $4 per barrel as a result of the Israeli-Palestinian conflict.
"If we are to base the projections on the Global Platts, until the end of the year it looks like there will be a slight deficit in world supply versus world demand. When demand versus supply is high, there is a price increase," Romero said.
She noted that the balance between global oil supply and demand is presently unequal, which also adds to the fear of sustained price hikes.
However, she contended that the unrest in Israel will not have a long-term impact on the global oil and gas supply unless the conflict escalates.
"We do not get our supply from Israel. In the case of the Middle East, we get almost all our crude oil from them. The United States and Saudi (Arabia) are the biggest, so if it escalates, it may affect the market because fear and uncertainties can drive up prices," she explained.
Locally, oil companies announce price adjustments every Monday to be implemented the following day. They adjust their prices weekly based on the movement of the Mean of Platts Singapore — the regional pricing benchmark adopted by the deregulated downstream oil sector.
This week, companies implemented a price rollback of P2.45 per liter for diesel, P3.05 for gasoline, and P3 for kerosene.
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