WORLD OIL PRICES (October 16-20 trading days)
Dubai crude increased week-on-week by more than a dollar per barrel. MOPS gasoline and diesel increased as well by about US$1.70 and US$0.90 per barrel, respectively.
Reasons for the Adjustment
- Escalating tensions in the Middle East - Oil hit January high level after the Iraqi government forces seized Kurdish oil fields after Kurds closed two production areas, raising fears of supply outages. Crude further edged up Friday, on signs of a tightening market.
- U.S. & Iran tensions added an upward pressure on crude prices over President Trump’s decision to decertify the Iran nuclear deal. This raised concerns over potential renewed US sanctions against Iran.
- Less compliance among members of the OPEC deal to curb output.
- Gasoline fundamentals were firm on steady supply and robust demand supporting the Asian market. Demand for gasoline remained strong particularly from in Indonesia, the Middle East, India and Sri Lanka.
- Gasoil market sentiment remained steady to weaker underpinned by relatively tight spot availability of medium sulphur gasoil.
- Rising inventories of petrol and diesel in the US, reviving concerns about elevated stockpiles during a time of slower demand.
- Russian oil company-Rosneft stressed that U.S. shale oil production somehow threatens OPEC intention to drain the world oil surplus.
FOREX: Philippine peso depreciated against the US dollar by P0.05 to P51.41, from P51.36 in preceding week.
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DOMESTIC OIL PRICES
Effective 24 October 2017, oil companies implemented a per liter increase of P0.65 for gasoline P0.35 for diesel and P0.55 for kerosene.
Year-to-date total adjustments are P4.24 in gasoline and P4.35 in diesel. LPG remained having net increase of P10.58/kg.
As monitored, shown below are the retail prices in Metro Manila beginning October 24, 2017.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||535.00-775.00|
* RON 95
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