Local oil players are rolling back prices for the third consecutive week after global prices dropped due to concerns that the coronavirus will spread further in China and will curb demand for oil.
According to the Department of Energy (DOE), the latest average Metro Manila price per liter of gasoline (RON95) is at P50.65, diesel at P41.45 and kerosene at P47.15.
Shell and Seaoil adjusted the prices of gasoline by P0.30 per liter, diesel by P0.40 per liter and kerosene by P0.35 per liter.
PTT cut the price of gasoline by P0.30 per liter and diesel by P0.40 per liter.
The DOE said as of January 21, year-to-date adjustments stood at a net decreases of P0.95 per liter for gasoline, P1.50 per liter for diesel and P1.64 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude settled at $60.69 a barrel while US crude futures ended at $54.19 a barrel.
The report said the drop was mainly attributed to concerns that demand for oil will dramatically go down as travel in will be limited in China, the world’s second-largest oil consumer.
“Experience with previous outbreaks such as SARS (severe acute respirator syndrome) in 2003 and MERS (Middle East respiratory syndrome-related coronavirus)from 2012 suggests the economic impact of an epidemic is relatively small. However, hedge fund positioning in oil has become lopsided, with bullish positions outnumbering bearish ones, leaving the market vulnerable to any disappointing news about consumption,” John Kemp, a Reuters market analyst explained.
Apart from China related fears, US’ rig count data, which serves as indication of future supply from the world’s largest crude producer, did little to support oil prices as energy firms added oil rigs for a second consecutive week.
