Consumers should brace for higher prices of local petroleum products until the end of this year as the Brent benchmark for crude prices would likely reach as much as $130 a barrel, according to a Platts official.
At the sidelines of the Platts Forum held Tuesday, Jorge Montepeque, global director for pricing at Platts, admitted that while nobody could rightfully predict oil prices, the slowdown in the growth in Asia has tempered what would have been a surge in Brent prices to as much as $150 a barrel.
“Growth in Asia is not so hot anymore. I think $120 barrel to $130 a barrel [pricing for Brent] is quite likely because China is cooling off a little bit. China is not as strong as it was. But the overall base for prices continue to be very strong,” Montepeque explained.
Although the expected increase in the Brent benchmark for crude prices would definitely impact local fuel prices, Montepeque urged the Aquino administration “not to do much at all and let the [fuel price] market be free.”
The Philippines uses the Dubai crude benchmark for crude prices while Brent is used largely as a benchmark in Europe. However, the price movement of the Dubai crude closely follows that of the Brent, which stood at $116 a barrel as of Monday.
Read more at Philippine Daily Inquirer