WORLD OIL PRICES (January 8-12, 2018 trading days)
Dubai crude increased week-on-week by more than a dollar per barrel. MOPS gasoline and diesel also increased by nearly US$2 and US$1 a barrel, respectively.
Reasons for the Adjustment
US-EIA data as of week ending January 5 showed a decrease in US crude stocks for the eighth straight week, but concurrent builds in oil product stocks kept a lid on oil futures.
Buying appetite from Chinese independent refiners seemed high at the start of the New Year and could largely be attributed to the fresh spate of quotas allocated.
Tension with Iran has helped fuel an oil rally that has lifted crude futures to their highest levels in more than three years. US President Trump faces a deadline on 12 Jan 2018 on whether to continue waiving oil-related sanctions that were lifted by the Iran nuclear deal. The pending decision from the White House on Iranian sanctions continues to loom large over the market, partly pushing prices higher.
OPEC expressed not to expect changes in their production cut agreement despite the recent run-up in prices that gave momentum to forecasts of the US shale resurgence. Latest data from Baker Hughes showed an increase in US rig count by 10 to 752 amid buoyant crude prices.
Gasoline market was calm as exports from China were expected to remain high throughout January and early February until the Chinese Lunar New Year holidays. As of Friday, Asian gasoline market was in downward trajectory with excess supply weighing on the market.
Fundamentals on gasoil/diesel market were largely unchanged over the week. Supply was sufficient against steady demand. Demand from Sri Lanka was firm while that of Vietnam was steady and is expected to pick up before the Lunar New Year. In spot demand, Indonesia's Pertamina was seen seeking 100,000 barrels of 0.03% sulfur gasoil for loading over the first two weeks of February.
Oil market analysts say a broad, global market rally, including stocks, has also fed investment into oil futures.
FOREX: Philippine peso depreciated against the US dollar by P0.38 to 50.26, from P49.87 in previous week.
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DOMESTIC OIL PRICES
Starting 16 January 2018, the oil companies implemented an increase of P0.80/liter for gasoline and P0.55/liter for diesel and kerosene.
Year-to-date price adjustments totalled P1.00 for gasoline, P1.75 for diesel and P1.60 for kerosene.
As monitored, shown below are the retail prices in Metro Manila beginning January 16, 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||548.00-773.00|
|* RON 95|
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