Oil prices seen to remain low in coming months
The public should expect oil prices to remain low in the coming months after the Organization of the Petroleum Exporting Countries (OPEC) decided to keep oil production at high levels, a lawmaker said Sunday.
LPG-MA party-list Rep. Arnel Ty said households, businesses and the government will benefit from the reduction of oil prices to below $40 per barrel as its deflationary impact is expected to help keep lending rates low.
“Filipino consumers can keep on using their savings from reduced fuel, electricity, and transport costs to buy other goods and services,” he said in a statement.
Oil prices are seen to remain low since the OPEC's move will result in a global oversupply of between 700,000 to 1.8 million barrels of oil per day.
With the expected decline in oil prices, Ty urged the national government to step up spending for infrastructure projects.
“Government should now take advantage of inexpensive oil to quickly perform at a lower cost major construction projects that tend to require a lot of spending for fuel and power,” he said.
After examining 45 countries, the global forecasting firm Oxford Economics Ltd. previously projected that the Philippines would be the biggest winner and its economy would grow the fastest in a depressed oil price setting. —Xianne Arcangel/ALG, GMA News
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