The Department of Energy (DOE) announced that oil companies will lower fuel prices next week. According to Rodela Romero, Director of the DOE Oil Industry Management Bureau, the rollback is expected as follows:
- Fuel: Reduction of ₱0.50 to ₱0.75 per liter
- Diesel: Bawas ng ₱1.00 hanggang ₱1.15 kada litro
- Kerosene: Reduction of ₱0.90 to ₱1.00 per liter
The drop in oil prices came after Israeli Prime Minister Benjamin Netanyahu assured the U.S. President Joe Biden that Israel will not target Iran's oil or nuclear facilities. In mid-October, oil prices rose due to fears that the exchange of missile attacks by Iran and Israel could affect the global oil supply. But the assurance from Netanyahu eased these concerns, according to Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Britzman added that, since the fear of geopolitical risks has decreased, the focus now returns to weak global demand. The International Energy Agency (IEA) also announced that global oil supply remains stable, helped by the end of the oil blockade in Libya, reduced demand, and minimal impact from hurricanes in the U.S. Gulf Coast.
Fears of China's slow economic recovery also sent oil prices further down. Even as others are hoping for a big economic boost, China's Finance Minister Lan Fo'an has yet to announce detailed stimulus measures, leaving many disappointed. According to Rodrigo Catril, senior strategist at the National Australia Bank, China's weak domestic demand, along with global deflationary pressures, shows the need for stronger fiscal support in the country.
