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Overseas news
Oil prices rose again on Monday as markets weighed uncertainties surrounding US-Iran peace talks and amid fears of a possible escalation after the US deployed more troops in the Middle East.
The US-Iran conflict started intensifying at the end of February, triggering a global disruption in oil supply and driving prices to record levels.
Many industries across the world are affected by changing oil prices, like transportation and manufacturing. In turn, consumers may feel the effects through fuel costs and through the prices of products and services.
Local developments
The peso closed at a record low against the US dollar on Monday at P60.69. This happened mainly due to a higher demand for the dollar as a “safe haven” asset amid the rising oil prices.
Additionally, Philippine oil refiner Petron has obtained 2.48 million barrels of crude from Russia in a search for alternative energy sources during the Middle East situation.
The country is also set to receive 900,000 barrels of diesel from various suppliers next month, said Energy Secretary Sharon S. Garin.
A boost in the country’s energy reserves may help provide sufficient fuel supply amid the ongoing crisis.
Further, the national government’s debt service bill jumped by nearly 30% in January versus the same month last year. It reached P137.67 billion due to higher interest payments.
Debt servicing covers the money needed to pay the principal and interest on a loan for a certain period.
Payment amounts can change when interest rates aren’t fixed for the entire term, and if the debt servicing is done in a foreign currency whose value moves relative to the peso.
With the shortened trading week and no sure signs of how long the energy crisis will last, you can consider adopting a wait-and-see stance for now.
