WORLD OIL PRICES (January 29- February 02, 2018 trading days)
Dubai crude decreased week-on-week by about US$0.40/bbl. Oppositely, MOPS gasoline and diesel increased by about US$0.80 and US$0.25 a barrel, respectively.
Reasons for the Adjustment
Oil dipped Monday on soaring North American oil production.
While earlier oil price losses recovered following reports of the U.S. Energy Department that the country’s crude inventory rose for the first time in nearly three months, this was counterbalanced by strong demand for gasoline and distillate products and news that OPEC countries maintained heavy supply cuts in January.
OPEC and other producers including Russia continued their strong adherence to supply cuts by 1.8 million barrels a day until the end of 2018.
One of the key drivers of oil price up-tick was the US dollar depreciation, which has lost 3.2% against a basket of major currencies so far this year. A falling dollar tends to help boast demand and support prices.
A large premium in the front-month Brent oil contract over those for future delivery, investment in crude futures and options also supported the week’s oil price increases.
In the Asian gasoil (diesel) market, supply from North Asia was limited as refineries produced more kerosene to meet seasonal winter heating oil demand.
FOREX: Philippine peso per US dollar rate depreciated by P0.48 to P51.39, from P50.91 in previous week.
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DOMESTIC OIL PRICES
Effective 06 February 2018, most of the oil companies implemented an increase of P0.50/liter in gasoline, P0.35/liter for diesel and P0.60 for kerosene.
Accordingly, year-to-date total adjustments increased to P2.30/liter for gasoline, P3.10/liter for diesel and P3.20/liter for kerosene (exclusive of the impact of TRAIN).
As monitored, shown below are the retail prices in Metro Manila beginning February 06, 2018.
|Products||Price Range||Common Price|
|* RON 95|
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