OIL PRICES are expected to swing in the coming weeks due to tight supply in the world market, the Department of Energy (DOE) said.
Supply and demand for crude oils remains to be “very tight” and “very volatile” in the world market after the Organization of the Petroleum Exporting Countries (OPEC) announced that it would extend their supply cut policy up to the end of 2025, said Rino Abad, director of the DOE’s Oil Industry Management Bureau, on Monday, June 3.
“Itong gasolina we can expect in the coming days na baka mag-increase din tayo dahil nga ang epekto po nitong recent OPEC+ decision… Magre-range talaga ang crude oil from $80 to $90 per barrel,” he told state television PTV.
“Walang oversupply, wala ring undersupply so the price will swing on a weekly basis. Mahirap i-predict dahil it can swing both ways,” he said, noting the both oil supply and demand are both at 102 million barrels a day.
The United States has been “trying hard to compensate” for the OPEC’s supply cut by increasing its production to around 13 million barrels a day, Abad said.
“Tina-try ng non-OPEC ang makabawi pero hindi din enough doon sa around 5.7 percent sa global supply ang tinanggal na ng OPEC+,” he said.
OPEC+ countries include the Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, Venezuela, Russia, Mexico, and Kazakhstan among others. (ABS-CBN News)
