When asked about the relationship of the weakening dollar and oil price:
The weakening of the US dollar actually helps in holding the oil prices up to some degree. Oil products are imports, so the local oil companies pay them with dollars. With the appreciation of peso, meaning the value of peso going up, thus increase in purchasing power of our currency. The problem with oil prices and why it is not affected by the appreciation of peso is because of the supply of oil from other countries, and the political conflicts present in oil producing countries. Moreover, oil markets are like stock market, the prices are decided based on speculations. If the suppliers think that their will be a shortage on oil supply then they would price the per barrel of oil higher. Or if the buyers and sellers think that there would be another political unrest in the country that they are extracting oil from that will surely affect the extraction and their operations in the said country then they would likewise price their oil higher. I’ve read several articles regarding how local oil companies cope up with the problem and read nothing about any problem with the Philippines that affects the price of oil.