Oil firms roll back prices; global crude posts first weekly drop since Nov.

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    After last week’s mixed price movements, local oil players trimmed the cost of petroleum products as global prices posted their first weekly decline since late November 2019.

    The Department of Energy (DOE) pegged the latest average Manila price per liter of gasoline (RON95) at P52.95, diesel at P44.90 and kerosene at P49.09.

    Shell, Petron and Seaoil adjusted the prices of diesel and kerosene downward by P0.20 per liter and P0.30 per liter, respectively, but did not implement any price change for gasoline.
    PTT and Clean Fuel imposed a P0.20 per liter rollback in the cost of diesel.

    Some retailers adjusted the prices over the weekend but most of them implemented the rollback today.

    The DOE said as of January 8, year-to-date adjustments stand at a net decrease of P0.10 per liter for gasoline, but a net increase of P0.40 per liter for diesel and P0.30 per liter for kerosene.

    Reuters reported as of Friday last week, Brent crude settled at $64.98 a barrel, down by 39 cents, while West Texas Intermediate crude fell 52 cents to end at $59.04 per barrel.

    The report cited that despite Iran’s warning of a revenge against the US, there has still been no disruption to Middle East oil production.

    Likewise, the Energy Information Administration announced that US crude inventories rose unexpectedly last week as gasoline inventories surged by their most in a week in four years.

    “We’re heading into a slack (fuel) demand period ahead of the summer driving season and rising inventories reminded folks this is still a somewhat oversupplied oil market,” John Kilduff, partner at Again Capital LLC in New York, explained in the same report.

    Despite this scenario, markets are still eyeing the longer-term risks of conflict between the US and Iran, paired with the Organization of the Petroleum Exporting Countries plus allies including Russia’s move to further cut oil production this year.