WORLD OIL PRICES (February 5-9, 2018 trading days)
Dubai crude decreased week-on-week by about US$3/bbl. MOPS gasoline and diesel also decreased by about US$3.30 and US$4.00 per barrel, respectively.
Reasons for the Adjustment
For over a month, crude oil price have been largely supported by the 1.8 million barrels per day cut in supply by the OPEC and Russia, but rising U.S. supply pressure the oil market.
During the week, crude oil price eased as the U.S. dollar rose to three-week-ago behind the sharp sell-off on Wall Street and other stock markets.
Oil’s inverse relationship to the dollar, whereby a stronger currency makes it more expensive for non-U.S. investors to buy dollar-denominated oil, has reasserted itself in the week.
Crude futures fell as sharp swings in equities continued to rattle global financial markets.
U.S. data showed a build in inventories by 1.9 million barrels in week ending Feb 2, though less than analysts have expected partly due to a surprising increase in refining activity that boosted fuel inventories.
Surge in the US oil rig count was confirmed Friday as US crude production hit 11 million b/d by November 2018, according to the US-EIA.
Baker Hughes report disclosed US crude rig count jumped by 26 to a total of 791, with the Permian rigs rising by 10 to a total of 437 – the highest level since late January 2015.
For gasoil/diesel, supply from China was easing some of the prompt tightness in the Asian market.
For gasoline, the region is seen to have sustainable lower prices in the near term. Supply in the Asian market is said to have been outstripping demand, and was further pressured by reports on the increase in US gasoline stocks.
FOREX: The Philippine peso per US dollar rate depreciated by P0.06 to P51.45, from P51.39 in previous week.
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DOMESTIC OIL PRICES
Effective 13 February 2018, most of the oil companies decreased their prices in gasoline by P1.00/liter, diesel by P1.30/liter and kerosene by P0.85/liter.
Year-to-date, total adjustments stands now at net increase of P1.30/liter for gasoline, P1.80/liter for diesel and P2.35/liter for kerosene..
As monitored, shown below are the retail prices in Metro Manila beginning February 13, 2018.
|Products||Price Range||Common Price|
|* RON 95|
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