6 Oil Companies Rollback Prices of Major Products Monday

Manila (PNA) — Petron Corporation, Pilipinas Shell Petroleum Corporation (PSPC), Seaoil Philippines Inc., PTT Philippines, Phoenix Petroleum Philippines and Chevron Philippines Inc. (CPI) will rollback prices of their major products by more than one peso on Monday.

All six companies will lower gas products by Php 1.25 per liter, while noting a decrease on its various diesel brands by Php 1.45 per liter

Moreover, the companies said their kerosene product’s prices will fall by Php 1.25 per liter.

All companies, except Phoenix Petroleum, will implement the price movements at 12:01 a.m. on Jan 19. Phoenix’s prices will move at 6:00 a.m.

Most of the companies said the price cuts reflect movements in international markets.

Early in the week, oil recovered by a few points in international stock markets, before tumbling again in the later part of the week.

However, the consistent slashing of oil prices may stop in February, since Saudi Arabia was reported to be planning cuts on its discount to Asia for the month and increasing the discount to Europe at the same time.

Meanwhile, the Organization of Petroleum Exporting Countries (OPEC), which triggered the oil price drop, expects that the demand for their oil will drop by 140,000 barrels per day to 28.78 million barrels per day this 2015. The group considers it as the lowest since 2004, according to its report released this week.

Thus two possibilities remain, OPEC might continue to defend its market share — as it did in its past decision to not cut oil production — or it might cut oil production since its demand is at the lowest volume since 2004.

If it does defend its market share, oil prices will likely continue to fall. However, if it does curtail production the prices may likely increase. (PNA) CTB/JLD/RSM