(Eagle News) — The series of reduction in the prices of petroleum products is due to the ample supply of petroleum in the international market, according to the Department of Energy (DOE).
In an interview with Eagle News Service, Energy Assistant Director on Oil and Management Bureau Rodela Romero explained that the crude oil pricing in the world market affects oil prices in the country, particularly because we are highly dependent on imported fuel.
Romero noted that presently, US crude inventories are at its highest level since December 2017.
“Sa ngayon po maganda ang supply sa international market. Lalo na yung US crude inventories, tumaas po yan. Highest level since December 2017.Eh alam naman po natin na ang US malaking consumer din yan. So kung wala silang source, definitely makiki-agaw din yan sa world supply. So mataas po ang imbentaryo nya, kaya maganda po ang supply sa international market,” Romero said in an interview at Net25’s Agila Balita Alas Dose.
She noted that movements of oil pricing in the international market affects the country, and in the event of a price increase, the local market would follow. The fundamentals of supply and demand also affect the local pricing of petroleum products.
A big increase on the prices of oil products is also possible once the Organization of the Petroleum Exporting Countries (OPEC) decides to have a major output cut at its next meeting with the non-OPEC partners.
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