WORLD OIL PRICES (December 4-8, 2017 trading days)
Dubai crude decreased week-on-week by about US$0.76/bbl. Similarly, week-on-week average MOPS gasoline and diesel decreased US$1.11 and US$0.45 per barrel.
Reasons for the Adjustment
Prices fell after an American Petroleum Institute (API) report that showed a 9.2 million barrel (MMB) rise in gasoline stocks in the week ended Dec. 1, and an increase of 4.3 MMB in distillate inventories, which include motor diesel and heating oil.
Supply cuts by the OPEC, Russia and other producers that were extended at a meeting last week for the rest of 2018 have helped lift Brent prices by more than 40 percent since June.
Another factor weighing on prices has been a rise in U.S. oil production C-OUT-T-EIA, which has climbed by 15 percent since mid-2016 to 9.68 MMB per day, close to levels of top producers Russia and Saudi Arabia.
he Asian gasoline market remained balanced with little change seen in fundamentals. Strong demand in Indonesia and Vietnam continued to support premiums in the physical market.
Demand for medium-sulfur gasoil was healthy in the Asian gasoil (diesel) market Wednesday. Production of the 500 ppm grade was robust as refineries were running at high operating levels due to good margins. China will be a big swing factor, as exports from the mainland may surge on good domestic and international margins.
Oil prices dipped on Friday as the U.S. dollar strengthened, although OPEC-led supply cuts are seen supporting markets going into next year. Traders said the slightly lower prices were mainly due to the stronger dollar, which has gained 0.8 percent this month against a basket of other leading currencies.
FOREX: Philippine peso depreciated against the US dollar by P0.21 to 50.63, from P50.42 in preceding week.
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DOMESTIC OIL PRICES
Effective 12 December 2017, oil companies implemented a P0.25/liter decrease in gasoline and P0.15 in kerosene.
Year-to-date total adjustment in gasoline remained at net increase of P6.09/liter, diesel at P5.65/liter and kerosene at P3.87/liter.
As monitored, shown below are the retail prices in Metro Manila beginning December 12, 2017.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||550.00-777.00|
|* RON 95|
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