WORLD OIL PRICES (November 13-17, 2017 trading days)
Dubai crude decreased week-on-week by about US$1.12/bbl. Similarly, week-on-week average MOPS gasoline and diesel decreased US$1.26 and US$0.15 per barrel.
Reasons for the Adjustment
The slower growth outlook in global crude demand in the latest Oil Market Report of the International Energy Agency (IEA)
IEA cut its oil demand growth forecast by 100,000 barrels per day (bpd) for both 2017 and 2018. That could mean world oil consumption may not breach 100 million bpd next year as many had expected. Also, supplies are likely to exceed that level, particularly as U.S. production continues to rise.
IEA said non-OPEC production would rise 1.4 million bpd in 2018, undermining efforts by the OPEC and other producers to limit global crude supplies and support prices.
OPEC will meet on Nov. 30 and is expected to agree an extension to its output cuts.
Saudi Arabia’s energy minister signaled willingness to extend output cuts but Russia cast doubts to support the extension on OPEC output cut deal;
The unexpected increase in US crude and gasoline stockpiles in the week ending November 10;
Asian gasoline market remains in balance at present due to healthy demand in the Middle East and South Asia that continues to draw in barrels;
- Asian gasoil market struggled to find support, as excess length continued to weigh on sentiment. Traders reiterated that more surplus barrels could potentially be diverted to Singapore, if the arbitrage economics from the Middle East to the west of Suez remain unviable.
FOREX: Philippine peso appreciated against the US dollar by P0.24 to 51.04, from P51.29 in preceding week.
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DOMESTIC OIL PRICES
Effective 21 November 2017, the oil companies implemented a per liter decrease of P0.50/liter for gasoline, P0.15 for diesel and P0.35 for kerosene.
Year-to-date total adjustments stand at a net increase of P5.84/liter for gasoline, P5.60/liter for diesel and P4.05/liter for kerosene.
As monitored, shown below are the retail prices in Metro Manila beginning November 21, 2017.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||550.00-777.00|
|* RON 95|
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