Local oil retailers are implementing starting today
a big-time price rollback after three consecutive weeks of increases.
Seaoil and Caltex reduced per liter prices by P2.10 on gasoline, P3 on diesel and P2.30 on kerosene.
PTT adjusted per liter prices downward by P2.10 on gasoline and P3 on diesel.
Today’s adjustments were mainly attributed to the strong jobs data from the United States released last week which raised concerns over higher interest rates. Investors were also seeking clarity on the European Union’s impending implementation of an embargo on refined fuel products from Russia.
The Department of Energy (DOE) said as of February 3, latest average Manila price per liter of gasoline (RON95) was at P70.35, diesel at P67.45 and kerosene at P79.23. Latest DOE data as of January 31 showed year-to-date adjustments stood at a total net increase of P7.20 per liter for gasoline, P3.05 per liter for diesel and P4.45 per liter for kerosene.
Reuters reported that as of Friday last week, Brent futures settled at $79.94 per barrel while US West Texas Intermediate crude ended at $73.39 a barrel.
Analysts said the global oil market cannot decide on what it should fear more, a recession or the US Federal Reserve being aggressive with interest rate increases.
Experts also said increases in bank interest rates this year are likely to weigh on the US and European economies that may result in an an economic slowdown that in turn may pull down global crude oil demand.
The report said the decrease in crude prices could have been higher if not for the reported recent sharp jump in traffic in China’s 15 largest cities which may indicate the world’s largest fuel buyer may soon need more supply. -Jed Macapagal
