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OIL PRICES may continue to decline next week amid easing geopolitical risks in the Middle East and a possible increase in oil production by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), an industry player said.

“World crude oil and refined fuel prices fell this week due to easing of geopolitical risk, prospect of another OPEC+ output hike in August that will lead to an increase in supply, and concerns of economic slowdown driven by prospects of higher US tariff,” Jetti Petroleum, Inc. President Leo P. Bellas told reporters on Thursday.

Based on three-day trading data from the Mean of Platts Singapore (MOPS), a benchmark used for refined oil products, the diesel price is projected to go down by P0.40 to P0.60 per liter, and gasoline by P1 to P1.65 per liter.

He noted, however, that fuel prices “have stayed range bound due to positive demand indicators from China and expectations that Saudi Arabia will raise its prices in August for buyers of its crude in Asia.”

“MOPS prices today are expected to track the increase in crude oil following suspension by Iran of cooperation with the International Atomic Energy Agency,” Mr. Bellas said.

“The US-Vietnam trade deal also boosted prices but the unexpected rise in US crude inventories limited the oil price gains.”

On Tuesday, local oil companies implemented a rollback in gasoline prices by P1.40 per liter, diesel by P1.80 per liter, and kerosene by P2.20 per liter.

The rollback in pump prices was the first after six consecutive weeks of price hikes for gasoline, four weeks for diesel, and three weeks for kerosene.

Since January, gasoline, diesel, and kerosene prices have increased by P9, P10.05, and P1.85 per liter, respectively. — Sheldeen Joy Talavera