.jpg)
Overseas news
OPEC+ agreed to boost its oil production targets by another 188,000 barrels daily starting in August. This is part of a slow reversal of output cuts that happened in 2023.
OPEC+ comprises the 13 OPEC members and 10 additional oil-producing countries, including Russia (the world’s third-largest in 2022). It has a tremendous influence on global oil prices.
This news, alongside normalizing shipments through the Strait of Hormuz, led to a decline in oil prices. Many analysts predict that these prices may drop further in line with the current supply and demand.
Oil prices are very much affected by the output of producing nations, which often agree to release only a certain number of barrels in a time period.
Local developments
Philippine inflation slowed to 6.4% year-on-year in June as the prices of oil and some food products such as meat, cereals, and fish eased. However, inflation is still expected to remain above the target range of the Bangko Sentral ng Pilipinas (BSP).
Given its capacity to erode purchasing power, inflation is of great importance to policymakers and regular Filipinos alike.
Meanwhile, the Philippine Stock Exchange Index (PSEi) closed higher at 6,100 thanks to more positive sentiment among investors.
Market sentiment is among the major factors influencing asset values. If investors believe that things are poised to improve, they may choose to put more money in ahead of the expected rise.
Relatedly, the Philippine peso eased to 61.415 per US dollar. This came after the latter lost strength due to US labor market data that was weaker than anticipated.
The Middle East situation appears to be steadily improving, but only time will tell if things will continue to get better. Staying updated with events and avoiding emotional investing decisions may be the right move for you right now.
