DOE: Oil price rollback seen next week amid signing of US-Iran peace deal

Motorists can look forward to a bit of economic relief as a price rollback on fuel products are expected next week amid the interim peace agreement between the United States and Iran, the Department of Energy (DOE) said on Thursday.

Fuel prices may range between P70 to P80 next week.

“Well, unang-una, malakihan po ang ating ini-expect na rollback next week. Tatlong araw pa lang ho ang trading day this week pero malaki na ho talaga ang binaba ng per barrel of petroleum products,” said DOE Oil Industry Management Bureau director Rino Abad over “Bagong Pilipinas Ngayon.”

(First of all, we are expecting a major price rollback next week. We are only three days into this week’s trading cycle, but the price drop per barrel of petroleum products has already been significant.)

“Mukhang malabo na hong tumaas. Bagkus kung may magagandang balita, may development ay inaasahan ho natin na magbababa tuloy iyong epekto sa price,” he added.

(It seems unlikely that prices will increase. On the contrary, if there is positive news or further developments, we expect this will continue to drive fuel prices down.)

“Ang inaasahan natin na decrease next week ‘no, ay magbababa sa ating price range around the territory na ho ng P70 to P80 per liter. Hindi pa ho ito abot doon sa P50 to P60 before the crisis, but, malapit na ho tayo.”

(The price decrease we are anticipating next week will bring our price range down into the territory of around ₱70 to ₱80 per liter. It has not yet reached the ₱50 to ₱60 level we saw before the crisis, but we are getting closer.)

Earlier on Wednesday, US Presidnet Donald Trump an Iran President Masoud Pezeshkian signed a memorandum of understanding seeking to end the Middle East conflict.

A two-month negotiating period has also begun, with the much-anticipated reopening of the Strait of Hormuz as the first step.

The Strait of Hormuz is considered the world’s most vital oil export route, connecting the biggest Gulf oil producers with the Gulf of Oman and the Arabian Sea. The strait is where 20% of the world’s oil and liquefied natural gas pass.

The DOE assured that it will continue to monitor the situation amid the positive development in the Middle East.

“So, tuloy pa rin ho ang ating pagbantay kung lalala ito. But kung hindi na ho at may two months or 60 days na sinasabi na compliance period iyong US and Iran doon sa mga conditions ng kanilang agreement, kapag na-sustain ho iyon, mukhang magtutuluy-tuloy na ho tayo na muling maibabalik natin ang level ng price at level ng supply before the crisis,” Abad said.

(So, we will continue our close monitoring to see if the situation worsens. But if it doesn’t, and if the US and Iran comply with the conditions of their agreement during this 60-day or two-month period – and if that is sustained – it looks like we are on track to finally restore both price and supply levels to where they were before the crisis.) — JMA, GMA News