WORLD OIL PRICES (February 26-March 2, 2018 trading days)
Dubai crude increased week-on-week by about US$0.70 a barrel. MOPS gasoline and diesel also increased by about US$1.40 and US$1.00 per barrel, respectively.
Reasons for the Adjustment
Reports that Libya's National Oil Corporation (NOC) invoked force majeure last week, on supply from its El-Feel oil field was one factor that supported oil prices. Protests by local tribes and security guards provoked the NOC’s action.
Signs of robust production curbs by OPEC and non-OPEC countries and a slight fall in U.S. production pushed the prices of oil on Tuesday.
Saudi Arabian oil minister Khalid al-Falih indicated that its crude production would be well below the production cap as the OPEC and its allies were committed to reducing output to bring balance and stability to the market.
Prices were also supported by U.S. Energy Information Administration data ending last week that showed a dip in domestic oil production to 10.27 million barrels per day from 10.271 million bpd in preceding week.
Asian gasoline market continued to be weak on sluggish spot market activity, pressured by soft spot demand amid excess supplies within the region. Supplies were coming from China and India. Market sentiment in the Middle East remained stable as well due to tepid demand and ample supplies. The rebound on prices seemed temporary, Platts further noted.
For the gasoil/diesel market, demand remained soft in the region following the Lunar New Year holiday season; but demand is reportedly expected to pick up this month while supply is capped by the start of maintenance season at refineries around the region. Platts also noted that demand is usually higher in the second quarter than the first quarter.
The week ended with bearish gasoline market as supply was still seen to be outstripping demand in the near term. Platts stressed of emerging demand, but still insignificant.
FOREX: The value of Philippine peso per US dollar appreciated by P0.18 to P51.96, from P52.14 in previous week.
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DOMESTIC OIL PRICES
Effective 06 March 2018, most of the oil companies implemented an increase P0.50/liter in gasoline, P0.30/liter in diesel and P0.80/liter in kerosene.
Year-to-date, total adjustments stands at a net increase of P1.40/liter for gasoline, P1.70/liter for diesel and P3.10/liter for kerosene.
As monitored, shown below are the retail prices in Metro Manila beginning March 06, 2018.
|Products||Price Range||Common Price|
|* RON 95|
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