Pump prices of gasoline products are anticipated to rise by as much as P1.50 to P1.65 per liter this week owing primarily to cost upswings in the world market.
At the same time, based on the calculation of the oil firms, diesel prices will jump by P0.30 to P0.35 per liter and kerosene by roughly P0.35 to P0.45 per liter.
The oil companies are expected to increase their pump prices tomorrow based on the conventional cost movement practice of the deregulated oil industry.
Geopolitical factors continue to exert pressure on international prices – including the continuing enforcement of sanctions on Venezuelan oil exports as well as other supply strain on Middle East producers, primarily Iran.
But as oil experts opined, the upward pressure in prices may not last long given forecasts of global economic slowdown plus the remarkable surge in crude production of the United States.
As emphasized, the hike in US oil exports will widen the crude choices of destination-markets, primarily Asia – with it seen matching that of Saudi Arabia and will be surpassing Russia’s scale of exports.
International Energy Agency Executive Director Fatih Birol said US production is projected climbing significantly to as high as 13.72 million barrels per day in the next five years from currently at 2.78 million barrels per day, hence, bulk of that could be earmarked for export and Asia will be a key landing market.
The hike in production, according to the IEA chief, will be propelled by the Permian basin’s output – with it jumping to 5.5 million barrels per day in 2024 or roughly double from last year’s 2.62 million barrels per day.
And based on the energy think tank’s assumption, export of crude from the US Gulf Coast could expand by as much as 5.1 million to 8.4 million barrels per day in five years from the 2018 level of 4.9 million. (Myrna Velasco)
