Prices of petroleum products are down for the fifth consecutive week this week as global prices dropped anew after Russia’s statement that more time is needed before committing to output cuts sought by the Organization of the Petroleum Exporting Countries (OPEC).
Demand is also tempered by the impact of the novel coronavirus globally.
According to the Department of Energy (DOE), the latest average Manila price per liter of gasoline (RON95) is at P49.87, diesel at P40.73 and kerosene at P44.37.
Shell and Seaoil adjusted the prices of gasoline by P0.30 per liter, diesel by P0.60 per liter and kerosene by P1.40 per liter.
Phoenix lowered the cost of gasoline by P0.30 per liter and diesel by P0.60 per liter.
Some retailers implemented the rollback over the weekend but most of them only made it effective today.
As of February 4, year-to-date adjustments stand at a net decrease of P2.85 per liter for gasoline, P3.90 per liter for diesel and P4.44 per liter for kerosene, according to the DOE.
Reuters reported that as of Friday last week, Brent crude futures ended with a 0.8 percent decrease to settle at $54.47 a barrel, while US West Texas Intermediate crude futures fell by 1.2 percent to end at $50.32 a barrel.
Jim Ritterbusch, president of Ritterbusch and Associates, said in the report that Russia’s lack of commitment on OPEC’s suggestion to provisionally cut output by 600,000 barrels per day (bpd) adds to the bearish movement in global oil trade.
Notably, Russia energy minister Alexander Novak claims that global oil demand may fall by 150,000 to 200,000 bpd in 2020 due to the spread of coronavirus.
However, US energy secretary Dan Brouillette said the impact of the coronavirus outbreak on global energy markets is currently marginal, though it could worsen if the virus spreads.
OPEC and its allies are supposed to meet in Vienna next month to come up with a plan on whether they will improve the present 1.7 million bpd production cuts.
