Group of Seven-coordinated release of emergency fuel stocks could cut diesel prices next week by P1 to P1.20 per liter, extending this week’s price rollback but gasoline prices are seen rising by P1.80-P2 per liter as global gasoline supplies remain tight. The Department of Energy is scheduled to announce the adjustments on Monday.
Diesel users could get another break at the pump next week as the Group of Seven nations (G7) and their partners coordinate a release of emergency fuel stocks to ease global supply fears.
Full week industry estimates showed diesel prices could decline by P1 to P1.20 per liter, extending this week’s steep rollback.
Gasoline motorists, however, are headed in the opposite direction, with prices expected to rise by P1.80 to P2 per liter as global gasoline supplies remain tight.
Based on current prevailing prices, diesel prices in Metro Manila could ease to around P82.83 to P102.23 per liter next week. Gasoline could climb to around P79.62 to P113.46 per liter, depending on the fuel grade and station.
Price of diesel weakened Friday
Jetti Petroleum Inc. president Leo Bellas said Saturday diesel weakened on Friday after the G7 nations and their partners agreed to release emergency oil and diesel stocks over the next four months.
The move helped ease concerns over diesel availability while reducing the likelihood that the United States would proceed with restrictions on diesel exports.
Gasoline, however, continues to face a tighter supply picture.
“Tight global gasoline markets continue to support prices,” Bellas said.
Robust demand, strong exports
He said Asian gasoline prices were supported by robust demand and strong exports, while refinery outages in the region and China’s halt in fuel exports further tightened the supply outlook.
The diverging forecasts come after a volatile week in the global oil market, with supply concerns repeatedly competing with signs of improving availability.
Bellas said prices surged on reports of another US aircraft carrier heading toward the Gulf, continued uncertainty surrounding US-Iran developments, and China’s decision to curb refined product exports.
Uncertainties
Uncertainty over US diesel export policy and Russia’s decision to extend its diesel export ban until the end of October also weighed on the market. These pressures offset some of the relief provided by recovering oil flows from the Middle East.
The Department of Energy is scheduled to announce the allowed adjustments on Monday.
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