2 weeks Ago
Fuel pump. Associated Press file photo While consumers may see cheaper fuel prices following US President Donald Trump’s new tariffs, this could be short-lived, analysts said. After hefty tariffs on Canada, Mexico, and China, the American president has widened this move, imposing higher trade taxes on almost all imports, including Philippine goods .
Following this, local fuel retailers are poised to greet Trump’s decision with price hikes next week amid fears of supply constraints and geopolitical conflicts, Jetti Petroleum president Leo Bellas said in an interview on Friday. This could mark the third consecutive week of oil price increase. Bellas said “some pullback on prices” may eventually happen, describing the recent developments in the US as “bearish for oil.
” With the US’ comprehensive tariff moves, the official said this could escalate the trade war, affecting global economic growth and oil demand. Jayniel Carl S. Manuel, an equity trader at Seedbox Securities, likewise believes this “could have a deeper and more immediate impact on global trade patterns and economic growth.
” That is, when compared to when Trump only targeted specific products, like steel and aluminum, in 2018. According to a report from Reuters, global benchmark Brent crude fell by over 6 percent to below $70 a barrel, with plans to increase oil production also influencing the decrease. “As markets are forward-looking, oil prices are beginning to price in the potential impact of newly unveiled tariffs on global growth,” Peter Garnace, equity research analyst at Unicapital Securities Inc.
, told Inquirer in a separate interview. “Coupled with the recent announcement from key OPEC+ members to increase oil production, oil prices could further decline,” Garnace said. Manuel echoed this, saying “a gradual downward pressure on fuel prices could become evident.
.. within weeks or possibly months.
” He said consumers, such as the motoring public, should not expect a sharp drop in pump prices as it would still depend on some factors, such as existing fuel inventories and foreign exchange movements. But Jetti’s Bellas said the recent developments can trigger further volatility in oil prices. Subscribe to our daily newsletter By providing an email address.
I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . “Price levels could remain depressed, but the threats of sanctions and tariffs on producers that could affect supplies could cause wide swings in prices,” he said..
