Manila: Gasoline prices are projected to decline anew next week, contrary to the forecast for diesel, on continued worries over developments in the Middle East. Citing price developments as of Thursday, Jetti Petroleum president Leo Bellas, in a report, forecast gasoline prices to roll back by PHP1 to PHP1.50 per liter, and diesel prices to increase by PHP4 to PHP4.50 per liter.

According to Philippines News Agency, Bellas explained that crude oil and refined fuel products prices have rallied this week on worries of stalled diplomacy and prolonged supply disruption following the suspension of negotiations on the peace deal, and renewed threats by Iran of full closure of the Strait of Hormuz. Concerns that global oil inventories could hit critical levels if stock draws continue at the current pace further contributed to the bullish sentiment.

He also pointed out that a jump in diesel prices along with that of middle distillate reflected the sharp surge in crude oil price benchmarks as the prospect of a resolution in the Middle East conflict has faded, sparking worries that further disruption of feedstock availability from the region would result in faster depletion of global stock inventories as peak summer demand approaches.

For gasoline, prices have declined due to increased supply from regional refineries and signals of weak demand in some parts of Asia. Nevertheless, the supply outlook in Asia remains tight and inventories remaining relatively low as refineries prioritize middle distillate production.

Following the recent ceasefire deal between Israel and Lebanon, global oil prices have softened and are likely to ease down further as hopes that the peace talks between the US and Iran will continue. He added that prices in the Asian benchmark, the Mean of Platts Singapore, are likely to go down in today's trading, potentially pushing the possible increase on diesel to the lower range of the estimate, and the rollback on gasoline to the higher side.