Oil Monitor as of 01 November 2017

WORLD OIL PRICES (October 23-27 trading days)  

Dubai crude increased week-on-week by about US$0.40 per barrel.  Similarly, both MOPS gasoline and diesel increased by almost US$0.30 per barrel.

Reasons for the Adjustment

  • Crude prices seesawed over the week on mixed signals affecting the world oil market:

    • ​Possible disruption of supply from Kurdistan Region amid conflicts the Iraq government

    • Decline in U.S. drilling rigs for the third week in a row

    • Steady climb of US crude output, apart from temporary downturns since late August following hurricanes Harvey and Nate; both storms caused production offline recently in the Gulf of Mexico, when offshore operators evacuated personnel as a precaution before Nate struck

    • Oil market focused more on comments from Saudi Arabia about ending a global supply glut rather than on reports of unexpected increase in U.S. crude inventories and high U.S. production and exports.

    • Steadily increasing demand for crude oil in Asia, mainly in China (average of 8.5 million bpd between January and September) and India

    • Three main factors that are driving China’s unappeasable appetite for crude: declining domestic production, increased access to imports and exports for independent refiners, and building up the strategic petroleum reserve

  • Asian gasoline market remained strong amid high demand in Southeast Asia and healthy demand from the Middle East amid a heavy refinery turnaround season.

  • Asian gasoil/diesel market have growing supply while demand remained relatively stable; India gasoil demand is anticipated to continue rising as the end of the monsoon season spurs demand from the agriculture, industrial and construction sectors.

FOREX: Philippine peso depreciated against the US dollar by P0.24 to P51.66, from P51.41 in preceding week. 

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DOMESTIC OIL PRICES      

Effective 31 October 2017, the oil companies effected a P0.25/liter increase in gasoline and diesel, and P0.45/liter in kerosene.

Year-to-date total adjustment stands now at P4.49 for gasoline and P4.60 for diesel.

 

As monitored, shown below are the retail prices in Metro Manila beginning October 31, 2017.

Products Price Range Common Price
P/liter
Diesel 30.65-39.35 34.90
Gasoline* 41.65-51.75 47.20
LPG, P/11-kg cylinders 538.00-778.00  

* RON 95

 

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