Oil Monitor as of 14 March 2017

WORLD OIL PRICES (March 06-10, 2017 trading days)

Oil prices sustained downward trend over the week except last Tuesday when Saudi Oil Minister Khalid Al-Falih affirmed that last year's agreement by OPEC and non-OPEC countries to curb supplies and boost prices has improved the oil market supply and demand fundamentals.  The Oil Minister added that OPEC would not let rival producers take advantage of the cuts to underwrite their own production investments.

However, analysts averred of OPEC’s unrealistic expectation of their production cuts.  With the steep slide in oil prices over the week, investors expressed scepticism that the production cut has been enough to reduce a global oil glut.  While prices had risen in more than two months, analysts recently expressed that record-high US crude stockpiles and increasing oil rig activity are seen to be jeopardizing the OPEC efforts to drain a global surplus.

More specific factors that have driven oil prices lower were as follows:

  •  Expectation of  U.S.  interest rate  hike  is  lifting the  US  dollar, which  makes oil expensive to other currency holders, consequently denting demand and driving prices lower.
  •  US oil rig count rose by eight to 617, according to Baker Hughes, as operators continued to ramp up activity just as crude prices dipped below $50/bbl for the first time since December.
  •  Barrels of oil from North Sea, West African and both North and South American are pouring into Asia, mitigating the intended tightening effects of fewer Middle East sour barrels on the market.

In Asia, Platts noted of sustained weak market fundamentals, with high stocks seen within the region. Singapore's light distillates stocks, including gasoline, reformate and naphtha, rose to a one-month high of 13.9 million barrels in the week ended March 8, according to International Enterprise Singapore data.   As for gasoil, fundamentals were stable, with the Exchange of Futures for Swaps remaining positive.  The market has plenty of 10 ppm sulphur gasoil while regional demand for 500 ppm sulfur grade would continue to lend support to prices.

Overall, Dubai crude decreased week-on-week by nearly US$1.60/bbl. Similarly, MOPS gasoline and diesel decreased by about US$1.30 and US$1.90 per barrel, respectively.

FOREX: Philippine peso depreciated further against the US dollar by P0.06 to P50.34/US$, from

P50.28 last week.

Other recommended reference sites:

·    http://www.aip.com.au/pricing;

·    http://www.indexmundi.com/commodities/?commodity=crude-oil-dubai

·    https://www.quandl.com/data/ODA/POILDUB_USD-Dubai-Crude-Oil-Price


DOMESTIC OIL PRICES

Effective 14 March 2017, most of the oil companies decreased their prices of gasoline by P0.35/liter, diesel by P0.60/liter and kerosene by P0.70/liter.Year-to-date adjustments were reduced to net increase of P0.49/liter in gasoline and P0.75/ liter in diesel.  LPG remain at a net increase of P9.10/kg.

As monitored, shown below are the retail prices in  Metro Manila beginning March 14, 2017.

 

Products

Price Range

Common Price

P/liter

Diesel

28.05-33.95

30.95

Gasoline*

39.40-48.09

46.68

LPG, P/11-kg

cylinders

496.00-756.00

 

For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: https://www.doe.gov.ph

 

 

Pages