Oil Monitor as of 18 April 2017

WORLD OIL PRICES (April 10-14, 2017 trading days)

Crude benchmarks continued to recoup the March's losses on increased hopes that world supply and demand were nearing balance.  All set for third consecutive weekly gain, benchmarks Dubai, Brent and WTI have respective average increases of almost US$2/bbl, all hovering above US$50 per barrel.

The market found more support from the latest monthly report of the International Energy Agency (IEA), stating that supply and demand in the global oil market are close to balance.   OPEC is set to meet on May 25 to consider extending the cuts beyond June, and at the same time, however, U.S. production has continued to increase, with overall  production  rising  to  9.24  million  barrels  a  day  out  of  the  United States, according to U.S. Energy Department figures.

Moreover, while OPEC group is inclined to push prices higher, the US production growth on the other hand continues to cap prices. OPEC March data disclosed that members of the group had cut output beyond their pledged level. On the contrary, the Energy services firm Baker Hughes disclosed Thursday that US drillers added 11 oil rigs in the week to April 13, bringing the total count up to 683.

In Asia, Platts noted that gasoline market was beginning to see some support as the regional supply glut slowly clears up on strong demand in the Middle East. This brings the ample supply of gasoline in Asia falling more than the regional demand drop.  As for gasoil, the ongoing refinery turnarounds was said to have attributed to the supply tightness of 500 ppm sulfur.  Meanwhile, supply of 10 ppm sulfur gasoil remained sufficient.  Moreover, demand in the Middle East is expected to increase in a couple of weeks as temperatures rise, Platts added.

Overall, Dubai crude increased week-on-week by nearly US$2.00/bbl.  MOPS gasoline and diesel increased as well by about US$1.70 and US$1.50, respectively.

FOREX: The value of Philippine peso appreciated against the US dollar by P0.50 to

P49.66/$, from P50.16 in preceding week.

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DOMESTIC OIL PRICES

Effective 18 April 2017, most oil companies implemented a P0.45/liter increase in gasoline, P0.60/liter in diesel and P0.60/liter in kerosene. Year-to-date, total adjutments resulted to net increase in both products, i.e. gasoline at P1.14/liter  and  diesel  at  P0.65/liter.  LPG remains with net  increase of P4.09/kg.

A s monitored, shown below are the retail prices in Metro Manila beginning 18 A pril 2017.

 

Products

Price Range

Common Price

P/liter

Diesel

29.23-33.96

32.20

Gasoline*

39.75-49.56

46.00

LPG, P/11-kg cylinders

 

480.00-700.00

 

*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:  http://www.doe.gov.ph

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