Oil prices seen to edge up slightly

Oil companies are set to implement price increases across fuel products this week on account of higher crude prices in the international market.

In a statement, Independent Philippine Petroleum Companies Association (IPPCA) said oil prices are poised to make “moderate” increase tomorrow to reflect the slight reversal in international price.

The group, however, did not give any price range.

“Despite earlier expectations of sustained price cuts due to OPEC boosting their production, and with Saudi Arabia and Russia agreeing to add production, recent political turbulence in Libya and Venezuela, and the recent oil export ban on Iranian oil production coupled with low inventory in US resulted in this price reversal,” IPPCA said, referring to the Organization of Petroleum Exporting Countries.

However, oil prices are not expected to steadily increase because of this.

IPPCA and Eastern Petroleum Corp. chairman Fernando Martinez said the favorable response of both Saudi Arabia and Russia to hike production and possible warming relationship of US and Russia with the incoming summit of President Donald Trump and President Vladimir Putin could have positive and calming sentiments in the world market.

“Thus, the resumption of lower oil price may still be expected and have positive effect in oil import dependent Philippine market,” he said.

Last week, gasoline prices were reduced by P1.15 per liter, diesel by P0.90 per liter and kerosene also by P0.85 per liter.