Philippine Daily Inquirer / 04:54 AM
January 08, 2020
MANILA, Philippines — The Department
of Energy (DOE) on Tuesday reiterated its call to the public to conserve energy
and use resources efficiently amid expectations by Moody’s Investor Service of
high volatility in oil prices this year due to sluggish demand and rising tensions
in the Middle East.
“[We are] closely monitoring
unfolding developments brought about by the recent Iran incident, especially
since it may potentially propel sharp movements in global oil prices, supply
levels, or both,” the DOE said in a statement.
The agency was referring to the
assassination of Iran’s top general by the United States, which caused a spike
in crude oil prices.
The Asian bellwether Dubai crude
surged to $66.89 per barrel on Jan. 3, hours after the Pentagon announced the
drone strike that killed Qassem Soleimani. Before the announcement, on Jan. 2,
Dubai was priced $64.89 per barrel.
Brent crude, the global benchmark,
breached $70 during trading on Monday from $66.25 per barrel on Jan. 2 before
easing to $68.20 on Jan. 7.
“[We] emphasize the urgency of fully
implementing energy conservation and efficiency programs,” the DOE said. “In
this regard, we continue to appeal to the public to adopt an energy efficient
lifestyle, and explore measures such as carpooling, walking to short distances
or using energy efficient appliances.”
The department also called for a
shift to electric-powered from gasoline-fed vehicles, which “would not only
help reduce harmful greenhouse gas emissions, but also help decrease the
country’s dependence on oil.”
In a report, Moody’s said rising
production in 2020 will outpace growth in demand for oil amid a cyclical
economic slowdown in several large industrial countries.“(S)hort-term supply
adjustments and rising geopolitical tensions in the Middle East will heighten
volatility,” it added.—Ronnel W. Domingo
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