DOE: Conflict in Israel won’t affect gas, oil prices

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The Department of Energy (DOE) said that the attacks on Israel will not have long-term effects on the country’s oil and gas prices unless the conflict escalates. 

In a report by the Philippine Star, DOE Oil Industry Management Bureau director Rino Abad said that based on their assessment, the ongoing conflict in Israel has a very low chance of disrupting actual supply. 

The country traditionally secures crude oil from Saudi Arabia, Kuwait, and Qatar. Abad said that the countries are less likely to encounter problems in supply considering they are not directly involved in the conflict.

For Rizal Commercial Banking Corp. (RCBC) treasury group chief Michael Ricafort said that the situation remains uncertain especially if the major oil producers in the Middle East, especially Iran, would be dragged into the conflict.

Ricafort said if Iran were involved in the conflict, it could block the Straight of Hormuz, a crucial passage for international oil tanks, as a retaliation to any action against the country. 

Abad noted that global oil prices have gone down during the first two trading days of the week, which may result in a rollback next week should the trend continue.