WORLD OIL PRICES (December 11-15, 2017 trading days)
Dubai crude increased week-on-week by nearly US$1.00/bbl. MOPS gasoline and diesel increased as well by about US$1.20 and US$1.50 per barrel, respectively.
Reasons for the Adjustment
Crude prices have been supported by an outage on the Forties Crude Pipeline System in the North Sea that was expected to last several weeks.
- Brent has been underpinned by expectations for an extended shutdown of Britain’s biggest pipeline from its North Sea oil and gas fields. Forties is the largest of the five crude oil streams.
- The pipeline transports almost 40% of the UK's North Sea oil and gas production from 85 fields onshore. BP and Royal Dutch Shell reportedly closed down oil fields in response to the repair.
The U.S. Energy Information Administration data showed a build in gasoline stocks and record-high US crude production, a pair of bearish factors trumping declines in crude inventories.
A fall in U.S. crude inventories in the week ending Dec 8 also lent some support to oil market. Stocks fell by 5.1 million barrels, the fourth consecutive week of decline, to 442.99 million barrels, the lowest since October 2015.
Asian gasoline market strengthened during the week as sources discussed a possible disruption to the supply of light-oil products due to the damaged Forties pipeline and a fire at Indian Oil Company's Paradip refinery.
U.S. gasoline stocks jumped 5.7 million barrels, more than double analysts’ expectations for a 2.5 million-barrel gain.
Fundamentals in the Asian gasoil/diesel were largely unchanged over the week. Sufficient supply was balanced by steady demand. Low sulfur grade remained under pressure on closed arbitrage to Europe while medium sulfur grade remained supported by steady demand within Asia, in India and Middle East.
FOREX: Philippine peso depreciated against the US dollar by P0.20 to 50.43, from P50.63 in preceding week.
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DOMESTIC OIL PRICES
Effective 19 December 2017, the oil companies implemented a decrease of P0.30/liter for gasoline, P0.50 for diesel and P0.45 for kerosene.
Year-to-date total adjustment in gasoline remained at net increase of P5.89/liter. Diesel and kerosene are stand at net increase of P6.15 and P4.32 per liter, respectively.
As monitored, shown below are the retail prices in Metro Manila beginning December 19, 2017.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||550.00-777.00|
|* RON 95|
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