Global oil supply cut won’t affect PHL inflation rate until 2018 —BSP

 

World oil producers' plan to cut on supply starting November would affect local pump prices, but the Bangko Sentral ng Pilipinas expects that the fuel price hikes will not have immediate effect on inflation rates and the prices of goods and services.

In a report on Unang Balita, GMA News' Lei Alviz also quoted a BSP source as saying that the effects of the expected oil price hikes in the world market won't be felt by the local economy until 2018.

Due to oil oversupply, leaders of the  Organization of Petroleum Exporting Countries have agreed to cut on production levels starting this coming November.

Citing industry sources, Alviz said the OPEC plans to cut production by about 700,000 barrels daily.

At present, the organization produces 33.2 million barrels/day and by then, production would be limited to 32.5 to 33 million barrels.

Economists see that prices of oil would rise to $60 a barrel from the present rate of $47.

On the other hand, the Department of Energy said local oil prices may not be affected by the OPEC supply cut.

Alviz quoted a DOE source as saying that there are a number of factors influencing the movement of fuel prices, including whether all OPEC-member countries would implement the agreed production cut. —LBG, GMA News