Global oil prices will likely drop below $50 per barrel in 2019 after threatening to breach $100 earlier this year, a Cabinet official said on Tuesday.
“We are seeing the Dubai crude oil at around the low $50s in the coming months,” Energy Secretary Alfonso Cusi told reporters at the sidelines of a forum.
Energy Secretary Alfonso Cusi
Dubai crude spot, used as one of the major benchmarks for world oil prices, is currently at $60.79 per barrel.
“We have submitted our position already… it shows that the forecast will be somewhere at low $50s and that supports the recommendation of the DBM (Department of Budget and Management) and [the] DOF (Department of Finance) to reinstate the excise tax,” he said, referring to increases scheduled next year.
“The country really needs infrastructure, so we need the funds, we need the money [from the tax adjustments],” Cusi added.
Given a continuous decline in global crude prices, the Energy chief said oil firms could cut pump prices for a ninth consecutive time next week.
“We’re seeing the price of fuel going down, the global price… and next week we are going to see again, hopefully, another rollback,” Cusi said.
Industry players this week slashed the price of diesel by P2/P2.10 per liter as well as prices of gasoline and kerosene by P2/liter each.
Meanwhile, Cusi said Qatar’s decision to pull out of the Organization of the Petroleum Exporting Countries might lead to higher production from the country and subsequently extend the decline in oil prices.
Lagare, J. B. (December 5, 2018). Crude prices could fall below $50/barrel – Cusi. Manila Times. Retrieved from https://www.manilatimes.net/crude-prices-could-fall-below-50-barrel-cusi/477968/