MANILA – Oil prices are projected to increase by as much as PHP1.40 per liter next week amid supply concerns, Jetti Petroleum President Leo Bellas said Friday.

Bellas said diesel prices could rise by PHP1.20 to PHP1.40 per liter, while gasoline prices may increase by PHP0.30 to PHP0.50 per liter, based on Asian benchmark prices and foreign exchange movements as of Thursday.

The projected hike in gasoline prices would mark the third consecutive week of increases, and the fifth for diesel.

“Worries of tightening near-term supply due to the temporary halting of production at two large oilfields in Kazakhstan and export constraints in the Black Sea are supporting the upward pressure on oil prices this week,” Bellas said.

He cited additional factors including stronger demand from China following better-than-expected economic growth data, as well as the International Monetary Fund’s higher economic growth forecast for 2026.

Bellas also noted that “oil prices have remained volatile despite the easing of worries over potential supply disruptions from the Middle East due to lingering concern of a US military intervention in Iran.”

“Geopolitical tensions continue to have a significant impact on the prices of diesel and middle distillates, and further supported by reports of a sharp rise in demand from the US and higher demand from Europe due to the colder temperatures sweeping the continent,” he said.

(PNA)