Oil retailers rolled back prices after two straight weeks of mixed adjustments.
Seaoil reduced per liter prices by P0.60 of both gasoline and kerosene and of diesel by P0.30. PTT, Clean Fuel and Jetti adjusted per liter prices downward by P0.60 on gasoline and by P0.30 on diesel.
Today’s adjustments were influenced by expectations of possible lower fuel demand due to a stronger US dollar and weak economic data from China which is the world’s top oil importer.
Data from the Department of Energy (DOE) as of May 30 showed latest average Manila price per liter of gasoline (RON91) stood at P59.90, diesel at P53.55 and kerosene at P66.98.
DOE data also showed year-to-date adjustments stood at a total net decrease of P5.05 per liter on diesel and P6.75 per literon kerosene and a net increase of P6.10 per liter on gasoline.
Reuters reported that as of Friday last week, Brent futures settled at $76.13 a barrel while US West Texas Intermediate crude closed at $71.74 per barrel.
The same report cited the contraction of China’s manufacturing activity for May due to weakening demand that cut the official manufacturing purchasing managers’ index down to 48.8 from 49.2 in April which also defied the forecasted 49.4.
It added the cooling inflation in Europe as well as the progress on the US debt ceiling bill supported the dollar index which made oil more expensive for buyers holding other currencies, affecting demand.
Experts said crude prices may again recover as the Organization of the Petroleum Exporting Countries and its allies decided to limit combined oil production to 40.463 million barrels per day (bpd) for the entire 2024.
Saudi Arabia, the group’s most dominant member, also decided to implement an additional voluntary one-month 1 million bpd cut starting July which the country said can still be extended depending on market developments. -Jed Macapagal
