WORLD OIL PRICES (August 06-10, 2018 trading days)
MOPS gasoline and diesel have increased by around US$0.35 and US$0.70 per barrel, respectively. This is differing to Dubai crude which has decreased week-on-week by almost US$0.35 per barrel.
Reasons for the Adjustment
Factors affecting crude oil prices:
Oil prices slumped after Chinese import data showed a slowdown in demand and weighed on world equity markets, which traded near break-even as U.S. technology shares extended recent gains.
China announced retaliatory trade tariffs in response to the United States' decision to impose 25 percent tariffs on another $16 billion of Chinese goods starting on Aug. 23.
As the U.S.-China trade spat turns into a full-blown war with tariffs and retaliatory tariffs and threats of further tariffs, U.S. energy exports to China may suffer with Beijing now following through with its threat to slap tariffs on U.S. oil and oil product imports.
- On Friday, U.S. Dollar Index reached its highest levels within the last 52 weeks. That was another negative factor that pressured the oil prices during the recent week. U.S. Dollar Index is a measure of the value of the dollar relative to a basket of foreign currencies. Oil is mostly traded in U.S. dollars all over the world and a stronger dollar pressures the oil demand.
Asian gasoil (diesel) market
Trade activity was thin in Asia's gasoil market Friday. Recent volatility in crude oil prices kept buyers on the sidelines, awaiting clearer pricing direction.
Asian gasoline market
The Asian gasoline market saw an improvement in market sentiment due to tenders in the market by Pertamina, the Indonesian state owned oil and natural gas corporation.
FOREX: Week-on-week value of Philippine Peso appreciated against the US dollar by P0.09 to P53.05, from P53.14 in previous week.
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DOMESTIC OIL PRICES
Effective 14 August 2018, most of the oil companies implemented a price increase of P0.15/liter for gasoline and P0.25/liter for diesel. There was no movement on the price of kerosene.
Year-to-date total adjustments stand at a net increase of P6.50/liter for gasoline and P6.55/liter for diesel.
As monitored, shown below are the retail prices in Metro Manila beginning August 14, 2018.
|Products||Price Range||Common Price|
|Gasoline (Ron91)||48.65 - 58.77||54.40|
|Gasoline (Ron95)||49.15 - 60.38||56.40|
|Gasoline (Ron97)||51.75 - 62.60||58.40|
|Diesel||41.50 - 46.24||44.80|
|Diesel PLUS||44.10 - 50.75||46.80|
|Kerosene||47.12 - 56.65||51.91|
|LPG, P/11-kg cylinders||570.00-820.00|
|* RON 95|
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