DOE expects new oil price hike next week


Posted at Oct 07 2022 06:39 PM

MANILA - An official from the Department of Energy (DOE) on Friday said the agency expects fuel prices to rise again next week.

The Organization of the Petroleum Exporting Countries (OPEC) is planning to address the surplus in the world oil market by next week, said Oil Industry Management Bureau Director Rino Abad.

“Mayroon po tayong oversupply ngayon mga august ranging between 1-2 million barrels. Ang desisyon ng OPEC ay tanggalin yung oversupply,” he told state television PTV.

“Ayaw na lang po siguro nila bumaba below $90 [per barrel],” he said.

Despite the ongoing war between Russia and Ukraine, oil supply has been stable in the past weeks after the European Union and the United States hiked interest rates, Abad said.

“Yang interest hike ang naging agarang epekto niyan ay pinapababa yung economic activity, kasama na po yung fuel consumption,” he said.

“Ang nag-cause ng rollback ay itong pagbaba ng demand kaya mayroon tayong inaasahan na weekly rollback,” he said.

Meantime, Abad said proposals for the Philippines to source oil from Russia have yet to be ironed out.

“Hindi pa po klaro kung paano magsisimula ang negotiations. In the end, private companies ang bibili sa Russia,” he said.

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