Oil firms rolling back prices for 4th straight week

Fuel prices will be rolled back for the fourth straight week as oil companies are expected to reduce pump prices by 10.70 to 10.80 per liter this weekend or on Monday.

Of the petroleum commodities, it had been gasoline products that had the heftiest price reductions in the past three weeks – now hovering at an aggregate

14.20 per liter; diesel with a total of 12.15 per liter; and kerosene at 11.80 per liter.

Despite this month’s enforcement of sanctions against Iran, it has been widely noted that market ended up teeming with supply because of increased production and beefed up inventories, especially the volume being injected by the United States into market.

Dubai crude, which is the benchmark for Asian oil markets, had been almost steady at US$79 per barrel, according to market reports.

Further, the overall crude basket of producers under the Organization of the Petroleum Exporting Countries (OPEC) had plummeted to the level of US$72 per barrel from last September’s high of more than US$80 per barrel.

Brent crude had also dipped to the US$72.83 per barrel level as of Friday trading; while WTI of the US had gone lower to US$63.14 per barrel.

For import-dependent countries like the Philippines, this is considered a provisional relief – especially with the Filipinos already getting more fixated on their Christmas shopping.

The previous months had been literally heavy on consumers’ pockets because of the extreme inflationary pressure on the cost of basic commodities – and such had been greatly blamed also on rising global oil prices.

With the cost swings now generally on downward trend, it is also expected that prices as well as social agitation will ease in the coming weeks or months.

Fresh sanctions vs Iran

But this may be shortlived with fresh sanctions imposed against Iran.

The United States will add 700 individuals and entities to its Iran blacklist and push the SWIFT global banking network to cut Tehran off when it re-imposes sanctions Monday in a “maximum pressure” effort to cripple the country's economy.

US officials said Friday they were determined to force Tehran to give up its nuclear activities and what the US says is broad support for “terrorism” in the region, re-imposing severe economic penalties six months after President Donald Trump's administration quit the 2015 Iran nuclear deal.

There will also be sanctions to cut off Tehran's ability to export oil, the country's most crucial foreign exchange earner, though US Secretary of State Mike Pompeo said eight importers would be given exemptions in exchange for slowing their purchases – a bid to avoid upsetting the global crude market.

The re-imposition of sanctions “is aimed at depriving the regime of the revenues it uses to spread death and destruction around the world,” Pompeo said.

“Our ultimate aim is to compel Iran to permanently abandon its welldocumented outlaw activities and behave as a normal country.” (With a report from AFP)