Mixed movements in fuel prices expected next week

Mixed movements in the pump prices of petroleum products are expected next week, according to the Department of Energy - Oil Industry Management Bureau (DOE-OIMB) on Friday.

As of Thursday’s trading in the Mean of Platts Singapore (MOPS), DOE-OIMB Assistant Director Rodela Romero said the following fuel price adjustments are expected next week:

• Gasoline - more or less rollback of P0.10
• Diesel - more or less increase of P0.30
• Kero - more or less increase of P0.05

Romero noted that these estimates exclude the operating cost of oil companies and other premiums.

Among the factors behind the movements in fuel prices are the United States-Iran de-escalation signals that significantly reduced the geopolitical risk premium. 

Comments by US President Donald Trump indicating that Iran was “seriously talking” with Washington triggered a $3 per barrel sell off but earlier tensions near the Strait of Hormuz pushed prices up.

Romero also cited the expectations of ample supply coming from US and other non-OPEC sources; as well as the softer demand for heating fuel due to forecast for milder US weather.

Oil companies announce official price adjustments every Monday, to be implemented on the following day. —VAL, GMA Integrated News