Oil prices to rise next week due to geopolitical tensions

Oil prices are expected to rise further next week due to ongoing geopolitical developments overseas, reversing this week's PHP0.80 per liter decline in diesel prices as Jetti Petroleum president Leo Bellas predicts a PHP0.20 to PHP0.40 increase for diesel and PHP0.40 to PHP0.60 increase for gasoline.

Bellas attributed the initial price drop to expectations of a peace deal in Ukraine easing sanctions on Russia, but noted that ongoing uncertainty has lifted oil prices due to tighter Western sanctions and additional US tariffs on Russian oil buyers.

Freight and premium levels remain elevated amid lingering geopolitical risks, coupled with strong demand during the summer travel season as evidenced by significant drops in US crude inventories and gasoline stocks.

Jetti Petroleum's president highlighted that the resurgence in oil prices reflects growing concerns over supply disruptions despite initial optimism about easing sanctions on Russian oil.

Bellas emphasized that the current market dynamics underscore the importance of geopolitical stability for sustained price reductions, noting that demand remains robust during peak travel periods.