Manila: Oil prices are anticipated to increase by as much as PHP1 per liter next week due to ongoing supply disruptions, as revealed by an industry player. The projected rise is influenced by current price movements and the foreign exchange performance, which suggest a PHP0.80 to PHP1 increase in diesel prices and up to PHP0.10 in gasoline prices.

According to Philippines News Agency, Jetti Petroleum President Leo Bellas highlighted that "middle distillate prices (diesel, jet, kerosene) remained strong on firm fundamentals." This strength is attributed to persistent concerns over supply tightness, exacerbated by reduced outflows from Northeast Asia due to refinery maintenance, unplanned outages, and limited exports from China. Additionally, Russian supply disruptions are a significant factor contributing to tight distillate markets.

Conversely, Bellas noted that Asian gasoline prices have slightly decreased this week, attributed to slowing regional demand. He mentioned that "the significant increase in US gasoline inventories for the first time in over a month" is a sign of reduced consumption in the United States, the world's largest economy.

Bellas also pointed out the potential impact of upcoming US sanctions on Russian oil majors Lukoil and Rosneft, effective November 21, and the US's renewed efforts to end Russia's war on Ukraine. These factors could influence price movements in upcoming trading sessions.

If the anticipated diesel price hike materializes next week, it will mark the fifth consecutive week of increases, while gasoline prices would rise for the eighth consecutive week. This week, both diesel and gasoline prices saw an increase of PHP1.20 per liter.