Oil prices drop significantly effective today, August 27, on sentiments caused by the easing of geopolitical tensions in the Middle East as well as weak economic data from China.
Petron and Seaoil reduced per liter prices by P1.15 on gasoline, P1.90 on diesel and P1.85 on kerosene.
Jetti, PTT and Clean Fuel adjusted per liter prices downward by P1.15 on gasoline and P1.90 on diesel.
Data from the Department of Energy (DOE) as of August 21 showed Manila price per liter of gasoline (RON91) stood at P58, diesel at P55.05 and kerosene at P71.21.
DOE data also showed year-to-date adjustments as of the same date stood at a total net increase of P8.05 per liter for gasoline, P5.95 per liter for diesel but a net decrease of P2.15 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude futures settled at $79.02 a barrel while US West Texas Intermediate crude futures ended at $74.83 per barrel.
The report said data from China, the world’s biggest consumer of petroleum fuel, showed new home prices in July fell at their fastest pace in nine years while industrial output, export and investment slowed and unemployment rate rose.
The report cited a statement by the Organization of the Petroleum Exporting Countries and its allies that said global oil demand growth must increase in the coming months or the market will have issues in absorbing the group’s planned increase in supply from October.
Saudi Arabia, the world’s biggest oil exporter, earlier said its crude exports fell to 6.047 million barrels per day (bpd) in June from 6.118 million bpd in May.
Analysts warned other factors may push crude prices up especially with US Federal Reserve Chair Jerome Powell’s indication the central bank is already preparing to cut interest rates.
