Oil Monitor as of 31 January 2018

Date Received by ITD (mm/dd/yyyy): 
01/31/2018

WORLD OIL PRICES ((January 22-26, 2018 trading days)  

Dubai crude increased week-on-week by US$0.43 per barrel. MOPS gasoline and diesel increased as well by nearly US$0.96 and US$0.82 a barrel, respectively.

Reasons for the Adjustment

  • Oil prices were higher after OPEC and other major oil producers expressed their intention to extend production cuts beyond 2018. Saudi Arabia and Russia initially signaled their intent to cooperate on supply beyond the current deal terms.

  • Global economic growth and expectations of robust global oil demand are pushing oil prices higher. On the other hand, OPEC and its non-OPEC allies led by Russia continue to tighten the market by restricting oil production. Over the weekend. Saudi Arabia’s Khalid al-Falih suggested further that the cartel and its non-OPEC partners need to talk about a longer framework for cooperation.

  • US-EIA reported a decline in crude supplies by 1.1 million barrels for the week ended Jan. 19, lower than analysts forecast, surveyed by S&P Global Platts, of 1.6 million barrels decrease. Similarly, American Petroleum Institute meanwhile reported an increase of 4.8 million barrels.

  • An involuntary drop in Venezuela’s output in recent months has deepened the impact of the OPEC and allies’ production cut.

  • Analysts said supply constraint was the key driver of the week’s oil price upward trend as mandated by the OPEC/Non-OPEC agreement. This was further supported by forex valuation as the U.S. dollar has continued to weaken beginning this year. Oil prices moved-higher and this has helped to push inflationary forces in many economies like Europe and Japan.

FOREX: Philippine peso depreciated against the US dollar by P0.33 to P50.91, from P50.58 in previous week.

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DOMESTIC OIL PRICES      

Effective 30 January 2018, most of the oil companies implemented an increase of P0.45/liter in gasoline, P0.50/liter for diesel and P0.50 for kerosene.   

Consecutive increases this year brings the total year-to-date adjustments to P1.80 for gasoline, P2.75 for diesel and P2.60 for kerosene.

As monitored, shown below are the retail prices in Metro Manila beginning January 30, 2018.

Products Price Range Common Price
P/liter
Diesel 37.60-42.93 42.05
Gasoline* 46.25-57.57 52.42
Kerosene 43.02-51.46 48.46
* 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: https://www.doe.gov.ph

 

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