Oil prices forecast to drop next week

ABS-CBN News

Posted at Nov 19 2022 11:21 AM | Updated as of Nov 19 2022 05:40 PM

Motorists queue for fuel at a gas station in Pasig City on October 10, 2022. Mark Demayo, ABS-CBN News
Motorists queue for fuel at a gas station in Pasig City on October 10, 2022. Mark Demayo, ABS-CBN News

MANILA (UPDATED) – Oil prices are forecast to decrease next week, as China, one of the main demand drivers, experiences a COVID-19 surge. 

"Dahil pa rin po ito sa pag-surge ng COVID sa China. In fact, 23,000 per day ang naging cases nila at nag-spread sa malalaki nilang region like Guanzhou at Chongqing siyempre bumaba na naman ang demand ng China at yung pagtaas na pagtaas na interest rate to beat inflation," Energy Asst. Director Rodela Romero said. 

Diesel prices may drop by P2.10 to P2.30 per liter, while kerosene prices are set to drop by P2 to P2.20 per liter. 

After a week of increase, gasoline prices may decrease by P0.75 to P1 per liter. 

However, industry experts still can't say if this trend of rollbacks will continue in the next coming weeks.

"Kung talagang imamanage lang nila ang market, maaaring dahil sa pagbaba ng demand magtutuloy-tuloy din ang pagbaba ng presyo kung despite the tightness ay enough ang supply sa world market kahit mababa ang demand," Romero said. 

China's zero-COVID policy prompts weaker demand oil usage worldwide. 

This year, so far, diesel prices have increased by as much as P36, P17 for gasoline and P28.60 for kerosene. 

-- Report from Alvin Elchico, ABS-CBN News