Oil players cut their prices for the second consecutive week mainly driven by investors’ fears on the possibility of a global recession which will effectively decrease demand for fuel products.
According to the Department of Energy (DOE), as of July 5, latest average Manila price per liter of gasoline (RON95) stood at P86.30, diesel at P87.70 and kerosene at P90.52.
Caltex and Seaoil reduced per liter prices by P5.70 on gasoline, P6.10 on diesel and P6.30 on kerosene.
PTT adjusted per liter prices downward by P5.70 on gasoline and P6.10 on diesel.
The DOE said as of July 6, year-to-date adjustments on petroleum products stood at a total net increase of P30 per liter for gasoline, P42.90 per liter for diesel and P36.35 per liter for kerosene.
Reuters reported as of Friday last week, Brent crude futures settled at $107.02 a barrel while US West Texas Intermediate crude ended at $104.79 per barrel.
The report also quoted several banks’ warning of a possible global recession to be experienced soon.
UBS in its reported cited the following factors for the gloomy out: the unwinding of oil trade while inflation hedge; a stronger US dollar; reaction of hedge funds to the negative oil price momentum; hedging of producers; as well as new mobility restrictions in China.
Meanwhile, the International Monetary Fund said outlook for the global economy had “darkened significantly” since April, as a global recession next year cannot be ruled out due to elevated risks.
