Manila: The prices of diesel products are projected to rise anew next week, but gasoline prices are seen to decline. Jetti Petroleum president Leo Bellas told reporters Friday that diesel prices are forecast to rise between PHP0.40 and PHP0.60 per liter this coming week, while gasoline prices are projected to go down between PHP0.10 and PHP0.30 per liter, citing data from this week's benchmark Mean of Platts Singapore (MOPS) and foreign exchange performance.

According to Philippines News Agency, fuel prices were buoyed earlier this week by concerns of tightening supplies following new European Union sanctions on Russia and the announcement that the United States would consider sanctioning Russian oil to end the war in Ukraine. However, Bellas noted that these factors 'have since weakened due to expectations that the new sanctions will have minimal impact on supplies.'

Bellas further explained that 'sentiments have improved following a trade deal between US and Japan, providing optimism on other trade negotiations. Signs of improving demand following the large decline in US crude oil and gasoline stockpiles have also provided support to oil prices.'

Amid the projected rise in diesel prices, Bellas said this remains 'supported by tighter regional availability and firm demand.' He added that the 'outlook remains delicately balanced between supportive fundamentals and mounting macro uncertainties.'

Meanwhile, the forecast for gasoline prices is affected by 'inventory builds at key trading hubs and signs of softening demand have caused price to weaken.' Bellas also remarked on the global implications of the new sanctions, stating, 'With Russia still a key global supplier of diesel and gasoline, the implications of the new sanctions, if implemented, could be severe.'