Oil prices likely to rise by 50 centavos to PHP1 next week: DOE

Oil prices are likely to increase by PHP0.50 to PHP1.00 next week due to an extension of the production phase of the Organization of the Petroleum Exporting Countries (OPEC), a Department of Energy (DOE) official has said. (Photo: Department of Energy/ Facebook)

MANILA—Oil prices are likely to increase by PHP0.50 to PHP1.00 next week due to an extension of the production phase of the Organization of the Petroleum Exporting Countries (OPEC), a Department of Energy (DOE) official has said.\

Oil Industry Management Bureau (OIMB) director, Melita Obillo, said oil prices are very unpredictable and are dictated by movements in the world market.

”Oil supply is okay. There was a decrease in the US inventory, and production is lower than expected. We might expect an increase of PHP0.50 to PHP1.00 but we do not expect it to go up to a peso,” Obillo said.

She added that part of the reason for the increase is the extension of the oil production phase of OPEC nations, which is normally from January to June.

Since January, she said, gasoline has undergone a net increase of 4 centavos per liter; diesel has had a net rollback of 25 centavos; while kerosene has had a net rollback of PHP1.10.