WORLD OIL PRICES (July 16-20, 2018 trading days)
Dubai crude has decreased week-on-week by more than US$2.90 per barrel. MOPS gasoline and diesel decreased as well by about US$2.90 and US$2.92 per barrel, respectively.
Reasons for the Adjustment
Factors affecting crude oil prices:
Crude prices dropped for the week as concerns about oversupply and lower demand
due to a possible economic slowdown caused by the trade conflict between the United States and China, the world’s two biggest oil users.
US President Donald Trump raised the stakes with a threat to impose tariffs on all $500 billion of Chinese exports to the United States unless Beijing agrees to major structural changes to its technology transfer, industrial subsidy and joint venture.
Asian gasoil (diesel) market
Poor demand for high and medium sulfur gasoil grades continued exerting downward pressure in the market due to the monsoon.
Thailand has offered 0.05% sulfur gasoil to Cambodia but the demand there was
weakened due to the monsoon season.
Asian gasoline market
Chinese domestic demand was slightly weaker. Market sources said weaker sentiment was also heard in the US West Coast region due to the influx of Asian gasoline.
On the other hand, China’s decreasing export could be attributed to its refineries maintenance and heavy monsoon rains/typhoons/flooding.
FOREX: Week-on-week value of Philippine Peso depreciated against the US dollar by P0.03 to P53.50, from P53.47 in previous week.
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DOMESTIC OIL PRICES
Effective 24 July 2018, most of the oil companies have implemented a decrease of P0.70/liter for gasoline, P1.00/liter for diesel and P1.25/liter for kerosene.
Year-to-date total adjustments stand at a net increase of P5.30/liter for gasoline and P5.45/liter for diesel.
As monitored, shown below are the retail prices in Metro Manila beginning July 24, 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||580.00-800.00|
|* RON 95|
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