Pump prices are expected to move in different directions next week as holiday travel slows, easing demand, while excess supply persists in the oil market, the Department of Energy (DOE) said Friday, December 26.
“Based on the 3-day monitoring in MOPS, we are expecting a mixed movement in the prices of petroleum products by next week,” the agency said in its weekly oil advisory.
The DOE forecast a rollback of as much as 50 centavos per liter in gasoline prices. Diesel costs are unlikely to change, while kerosene could rise by about 10 centavos per liter. The estimates exclude operating costs and other premiums charged by oil companies.
“The mixed or slightly downward pressure are attributed to the global oversupply coming from non-OPEC economies like the US, weak demand due to the winding down of holiday travels and seasonal industrial demand and the uncertainty of the geopolitical tensions in Venezuela, Ukraine and Russia,” the advisory read.
The agency noted that ongoing geopolitical tensions, particularly in Russia and Ukraine, could offset the factors that normally push prices down, creating a mixed pricing scenario for next week.