WORLD OIL PRICES (December 10-14, 2018 trading days)
Dubai crude has decreased week-on-week by almost US$0.90 per barrel. MOPS gasoline and diesel have also decreased by around US$0.60 per barrel and US$1.00 barrel respectively.
Reasons for the Adjustment (Rollbacks)
In its December Short-Term Energy Outlook, EIA forecast WTI to average $54.19/b in 2019, down $10.66/b from the agency's forecast last month, and Brent to average $61/b in 2019, down $10.92/b from last month's forecast.
EIA expects that the magnitude of the recent price declines combined with the OPEC production cuts will bring 2019 supply and demand numbers largely into balance, which EIA forecasts will keep prices near current levels in the coming months.
EIA forecasts US oil production to average 10.88 million b/d in 2018, up from 9.35 million b/d in 2017, and then climb to 12.06 million b/d in 2019.
Per EIA, Saudi Arabia has ramped up production to 10.92 million b/d in November, up 200,000 b/d from October, in response to pressure from the US. Saudi Arabia produced 10.13 million b/d in November 2017.
- Uncertainty over the global economy stemming from U.S.-China trade tensions could undermine oil consumption next year, as growth in supply gathers pace (Reuters).
- Diesel/Gasoil: Asian gasoil market is persistently bearish amid supply overhang and lackluster demand. Platts outlook for gasoil remained on the downside as the market anticipates heavy flow of gasoil supply from China in December. China is heavily exporting in December because of the additional export quota allocations to refiners.
FOREX: Week-on-week value of Philippine Peso depreciated against the US dollar by P0.12 to P52.73, from P52.61 in the previous week.
Other recommended reference sites:
DOMESTIC OIL PRICES
Effective 18 December 2018, most of the oil companies implemented a price decrease of P0.10-P0.15/liter for gasoline, P0.25/liter for kerosene and P0.25-P0.35/liter for diesel.
The total year-to-date adjustments for gasoline this week reached a net decrease of P0.15/liter. For diesel, the net increase was further lowered to P1.25/liter same with kerosene with P0.83/liter.
As monitored, shown below are the retail prices in Metro Manila beginning December 18, 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||531.00-715.00|
For more information, call the