Increase in OFW Deployment to Middle East Seen as Oil Price Recovers
The Bangko Sentral ng Pilipinas projects an increase in the deployment of Filipino workers to oil exporting countries as prices of oil in the global market recovers, a report by the Philippine Star said. The price recovery is seen as a result of the Organization of Oil Exporting Countries’ (OPEC)’s plan to lower global production.
The rate of Filipino deployment to the Middle East continues to grow as we send skilled workers according to BSP Deputy Governor Diwa Guinigundo.
The price of oil per barrel increased significantly up to above $50 as oil-exporting countries committed to reduce global oil production. OPEC agreed to slash the output by 1.2 million barrels per day starting January. Non-OPEC oil producers, on the other hand, decided to reduce their exports by 600,000 barrels per day.
Higher oil prices would mean an increased capability of oil-rich countries to employ more Filipino workers. Even as oil price declined during the previous months, demand for overseas labor did not come down to levels analysts have expected.
There are, however, other markets for overseas Filipino workers aside from oil exporting countries in the Middle East.
10 million Filipinos work and live abroad. They are sending cash to their families and loved ones in the Philippines which account for about 10 percent of the country’s domestic output.
$20.2 billion in remittances went into the country in the first nine months of the year, a 4.8 percent increase in the same period last year. The BSP originally set a 4 percent growth in remittances.