WORLD OIL PRICES (January 2-5, 2018 trading days)
Dubai crude increased week-on-week by more than a dollar per barrel. MOPS diesel also increased by almost US$2/bbl, much higher than that of gasoline that moved higher by only about twenty cents a barrel.
Reasons for the Adjustment
The Asian gasoline paper market continued to push lower last Friday, on limited demand and many available cargoes in the market. Ample supply from China, and inventory builds in the US are weighing heavily on the market.
Fundamentals were largely unchanged in the Asian gasoil market during the week, amid the adjustments to the change in benchmark. With strong distillate margins, refineries globally continue to run at high rates, market watchers noted.
Per EIA, U.S. crude inventories fell 4.9 million barrels during the week, more than the 3.9-million decline forecast, but bigger-than-expected builds in gasoline and fuel stocks offset that drawdown. The market was bolstered modestly by data showing a sharp decline in U.S. production in previous week, resulting from extreme cold temperatures across the United States.
Strength in the US heating oil market continued to limit flows of gasoil to Northwest Europe, adding to the existing winter tightness in Europe. Northwestern European gasoil markets typically strengthen in the winter months as demand season for heating fuel rises, but supplies were steady tight ahead of the peak demand season after earlier draws from storage at a time when the market was backwardated.
FOREX: Philippine peso appreciated against the US dollar by P0.10 to 49.87, from P49.96 in previous week.
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DOMESTIC OIL PRICES
Starting 09 January 2018, the oil companies implemented an increase of P0.55/liter for diesel and P0.30/liter kerosene. There is no movement in the price of gasoline this week, except for some stations that have already implemented the excise tax of P2.97/liter.
Some petroleum retailers in Metro Manila have already reflected the new excise tax, i.e. diesel P2.50/l, kerosene P3.00/l, per R.A. 10963.
As monitored, shown below are the retail prices in Metro Manila beginning January 9, 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||548.00-773.00|
|* RON 95|
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