WTIC managed to get as low as 79.xx intraday. As US selloff made Oil traders cash out as well. I expect WTIC to hold around 77-81 level and bounce 3-6months to around 90-100 level.
In terms of price here in the Philippines. 81USD per barrel = 82 x 44.80 / 119.24(liters per barrel) = 30.80 pesos per liter.
Adding their gross profit margin and inventory costs of 20%. 30.80 + 20% margin = Diesel prices of 36.96 pesos per liter could be the bottom.
Low WTIC could increase profits of companies and decrease inflation, make car owners happy and increase traffic.
GDP wise, low WTIC can be economical friendly, but don't expect to hold at these low levels.
* break below of 77-81 could bring WTIC to 67-73 level.
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