Big time oil price hike expected next week

You might want to fill up those tanks this weekend. This one's gonna hurt.

Fuel prices are expected to increase next week, as Facebook page PH Fuel Watch suggests. According to their Mean of Platts Singapore (MOPS) estimates, it could be a big one. For Tuesday, April 26, diesel prices might increase by PHP 4.34 per liter, and gasoline could go up by PHP 2.83 per liter.

The continuing global market volatility is still mainly caused by the repercussions of Russia's invasion of Ukraine according to Reuters, as discussions from the European Union (EU) to ban or phase out Russian oil purchases give the biggest influence on crude oil prices.

In addition, Libya's political crisis caused them to have problems producing their daily output of oil. The country's authorities say that tribal leaders in their southern region have shut down their largest oil field, and there are blockades at major fields and export terminals, making Libya lose around 550,000 barrels of oil per day.

Lastly, the world's biggest oil importer, China, is slowly easing restrictions to open up its economy. This will have a significant effect on the global oil supply chain especially since supply remains tight from the current struggles of OPEC+ members in meeting their production targets.

If the rising price trend continues, then it would offset the two straight rollbacks we experienced two weeks ago. Let's just hope things change between today and Tuesday.