Manila: Oil prices will likely increase again next week on global market developments, such as the US-EU trade deal, which reduced the tariff of European exports to the United States to 15 percent, and supply-related factors.

According to Philippines News Agency, citing the benchmark for refined petroleum products, the Mean of Platts Singapore (MOPS), and the foreign exchange average as of Thursday, Jetti Petroleum, Inc. president Leo Bellas said diesel prices could increase by PHP0.80 to PHP1 per liter and gasoline prices by PHP1.50 to PHP1.70 per liter.

"The oil markets responded positively following the trade deal between the US and European Union, while the threat of US sanctions on Russia and buyers of Russian oil has also helped support oil prices this week," Bellas told journalists Friday.

He explained that the price of diesel sustained its rise "as supply tightens while the bigger-than-expected decline in US gasoline stocks supported the view of a strong driving season and as peak summer demand surges."

Another contributor is the weakness of the local currency, he said, with the peso depreciating to the 58-level on Thursday, a day before the implementation of the 19 percent reciprocal tariff on Philippine exports to the US.

The local currency gained a bit when it opened Friday's trade at 57.86 against the US dollar.

The US' protectionist policies have been the major factor in the global markets for months, affecting the movement of prices, supplies, and inflation, among others.

"Recently, the tariff threats, news of extension and uncertainty surrounding countries yet to negotiate a trade deal with the US, and the delay in the cutting of interest by the US Federal Reserve have weighed on crude prices," Bellas added.