Another oil price rollback seen next week
Credit to Author: Brix Lelis| Date: Sat, 14 Sep 2024 00:00:00 +0800
MANILA, Philippines — Motorists can expect another round of rollbacks of domestic pump prices next week due to oversupply in the market, as demand remains lackluster.
The Department of Energy-Oil Industry Management Bureau (DOE-OIMB) estimated a per-liter downward adjustment of P0.90 to P1.20 for gasoline, P1.30 to P1.60 for diesel and P1.50 to P1.65 for kerosene.
The estimates were based on the four-day trading in the Mean of Platts Singapore.
“Weakening global demand prospects and expectations of oil oversupply are the main factors for the said rollbacks,” DOE-OIMB assistant director Rodela Romero said.
She noted that OPEC+ has lowered its consumption forecasts for this year and the next, while crude demand in China continues to be “seasonally weak.”
In its September oil market report, OPEC+ trimmed its global oil demand forecast for 2024 by 80,000 barrels per day to 2.03 million b/d from 2.11 million b/d in the previous month’s assessment.
The oil demand growth forecast was likewise cut for next year by 40,000 b/d to 1.74 million b/d.
Friday’s trading would determine the final price adjustments, which will be announced on Monday and will take effect the following day.