WORLD OIL PRICES (June 12-16, 2017 trading days)
Talks of oil supply glut reverted prices higher by about half a dollar Monday, but have seesawed in the next trading days on mixed news of emerging fresh demand for petroleum products from the Middle East and in the region.
Other factors that have predominant effects to the market were as follows:
- OPEC report of an increase in its production for May despite a supply cut agreement and said the oil market was rebalancing more slowly than expected;
- Pronouncement of leading energy authority that the world’s oil glut is seen to persist until next year despite the efforts by major producers to shore up the oil price by cutting output; and
- High global inventories and increasing doubts over OPEC’s ability to comply with the agreed output cuts.
In Asia, the week ended with mixed sentiment in gasoline and gasoil market as both bullish and bearish factors continued to exert pressure. While gasoline market still relatively strong, analysts say that it is affected by the weak fundamentals in Europe and the US. As for gasoil, emerging regional demand for both low and medium sulfur gasoil grades have continued to sustain sentiment, while surplus barrels remained trapped within the region. Platts further noted that the strong EFS continue to keep a lid on cross-regional flows from Asia and the Middle East to the West of Suez.
Overall, Dubai crude decreased week-on-week by more than a dollar. MOPS gasoline and diesel likewise decreased by more than US$2 and about US$0.50 per barrel, respectively.
FOREX: The Philippine peso depreciated against the US dollar by P0.12 to P49.61/$, from P49.49/$ in the previous week.
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DOMESTIC OIL PRICES
Effective 20 June 2017, the oil companies implemented a price decrease of P0.70/liter for gasoline, P0.10/liter for diesel and P0.15/liter for kerosene.
Year-to-date, gasoline and diesel have net decrease of P0.91 and P1.35 per liter respectively. LPG remains at net decrease of P0.76/kg.
|As monitored, shown below are the retail prices in Metro Manila beginning June 20, 2017.|
|LPG, P/11-kg cylinders||435.00-680.00|
* RON 95
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