Oil Monitor as of May 16, 2017

WORLD OIL PRICES (May 8-12, 2017 trading days)

Early this week, crude prices sustained the previous week declines, but slowly recovered as the week ended on statements that major oil-producing countries are in near agreement to extend supply cuts into 2018.

OPEC and the 11 non-OPEC producers, including Russia, who pledged to reduce output, will gather May 25 in Vienna to review and possibly extend their six-month agreement, which is set to expire at the end of June.

Relatedly, analysts are of the opinion that U.S. production could still threaten to disrupt the market balance unless OPEC cuts were deepened, thus the proposal to extend production cuts into 2018.

U.S.  production  reportedly  soared  by  10  percent  since  mid-2016  to  9.3  million  bpd. Moreover, reports also say that North Sea oil production, generally seen in terminal decline, is expected to jump by a net 400,000 bpd in the next two years as producers improve efficiency.

In Asia, gasoline market sentiment was fairly stable with few cargoes moving from North Asia and Singapore to the Middle East. As of Friday, gasoline market was stronger following an inventory drawdowns in the US and UAE. On the other hand, on-going refinery maintenance and strong domestic demand in India reduced availability of 10 ppm sulfur diesel in the region.  These added to lesser supply of gasoil from Japan. However, market sources are seeing overall demand for gasoil as steady to weak, and that supply is expected to increase as regional refineries return from turnarounds.

Overall, Dubai crude had minimal week-on-week decline by about US$0.30/bbl. MOPS gasoline increased by almost US$1.00/bbl while MOPS diesel remained at previous week level.

FOREX: The Philippine peso appreciated against the US dollar by P0.05 to P49.90/$, from

P49.95 in the previous week.

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DOMESTIC OIL PRICES

On 16 May 2017, the oil companies implemented a P0.30/liter increase in gasoline but there was no movement in the price of diesel and kerosene. Year-to-date, total adjustments for gasoline is at net decrease of P0.06/liter. Diesel and LPG remained at net decrease of P0.75/liter and P0.76/kg, respectively.

As monitored, shown below are the retail prices in Metro Manila beginning 16 May 2017.

 

Products

Price

Range

Common

Price

P/liter

Diesel

26.70-31.91

30.15

Gasoline*

37.65-49.80

45.40

LPG, P/11-kg

cylinders

 

435.00-680.00

 

*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:  http://www.doe.gov.ph

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