The Philippines Department of Energy is planning to import oil reserves from Russia and other non-member countries of the Organization of the Petroleum Exporting Countries (OPEC), to cushion the impact of rising global oil prices, CNN reported.
The plan came despite crude prices dropping this week. Reports had said Brent crude futures closed at $75.70 a barrel, down 74 cents or 1 percent. The US West Texas Intermediate (WTI) crude futures ended at $66.78 per barrel, down $1.1 or 1.6 percent.
The Energy Department announced on Tuesday its “two-pronged strategy” to source petroleum products from Russia and other non-OPEC countries that will “establish a strategic petroleum reserve (SPR) to cushion the impact of the rising price of oil in the international market.”
The Organization of Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 14 major oil-producing nations. Russia is not a member of OPEC, and this would be the first time the Philippines is importing oil from Russia.
At present, the Energy Department said oil companies are only required to maintain a minimum inventory requirement (MlR) of in-country stocks equivalent to 30 days of crude and products for refiners, 15 days of products for importers/bulk suppliers and seven days of liquefied petroleum gas stocks for LPG players.
“The government is aware of the country’s vulnerabilities to abrupt changes in the international oil situation and impending threats on the same, hence we are formulating various strategies to address those vulnerabilities to cushion the impact for our consumers,” Energy Secretary Alfonso Cusi said on Monday.
The Presidential Spokesperson added diesel from Russia may still need to be processed further in Singapore before it reaches the country.
