Oil prices mixed

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    Price movements are mixed starting today, August 25, after last week’s hike, to reflect developments in global crude market which slumped anew due to renewed coronavirus lockdowns and worries on rising supply.

    According to the Department of Energy (DOE), the latest average Manila price per liter of gasoline (RON95) is at P48.80, diesel at P37.77 and kerosene at P37.69.

    Pilipinas Shell and Seaoil adjusted the per liter prices of gasoline up by P0.15 but decreased the costs of diesel and kerosene by P0.20 and P0.25, respectively.

    As of August 18, year-to-date adjustments on fuel prices summed up to a net decrease of P4.17 per liter for gasoline, P8.69 per liter for diesel and P13.04 per liter for kerosene.

    Reuters reported that as of Friday last week, Brent crude futures settled at $44.35 a barrel while US West Texas Intermediate ended at $42.34 a barrel.

    This developed as the European Union’s economic recovery has slowed down but in contrast to the American housing and manufacturing survey data that came in better than expected.

    Meanwhile, Libya’s national oil company said it could restart oil exports after its internationally recognized government in Tripoli announced a ceasefire which will put further pressure on oil prices.

    The report explained that additional supply from Libya will add to the output from the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia which might further pull down prices.

    OPEC expects oil demand this year to fall by 9.1 million barrels per day (bpd) and by as much as 11.2 million bpd if there is a resurgence of coronavirus infections.