WORLD OIL PRICES (June 25-29, 2018 trading days)
Dubai crude has increased week-on-week by around US$ 2.50/bbl. Similarly MOPS gasoline and diesel have also increased by more than US$ 1.70 and US$1.30 per barrel, respectively.
Reasons for the Adjustment
Asian gasoil (diesel) market
G asoil market remained depressed as rising outflows from India, Middle East and North Asia continued to outstrip waning demand.
Exports from India have been increasing in recent weeks as the monsoon season has curbed domestic demand.
Most refiners are still maximizing production due to healthy margins for the middle distillate, especially on jet fuel and diesel/gasoil.
Demand is waning in the region due to heavy rains, an ongoing fishing ban in China and the monsoons in India were key reasons hampering demand; thus, suppliers have started to source alternative homes for their surplus barrels.
Asian gasoline market
Gasoline market remained largely stable amid tepid spot demand and stable regional supplies.
The market was mainly looking out for Indonesia’s and Pakistan’s spot demand.
Supply is sufficient within Asia and more is expected to enter the market heading into third quarter.
The market was expected to be bearish moving forward, unless unexpected circumstances occur in the near future.
Factors affecting crude oil prices
Oil prices rose sharply this week after the US State Department announced it would offer no waivers to Iran's oil buyers when sanctions snap back in November, a hard - line approach many allies did not expect after the Obama administration allowed them to contin ue some imports in 2012 - 2015 as long as they made significant cuts every six months.
Massive drawdown in US crude stocks, along with Libyan and Venezuelan supply concerns.
FOREX: Week-on-week value of Peso depreciated against the US dollar by P0.04 to P 53.45 from P 53.40 in the preceding week .
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DOMESTIC OIL PRICES
Effective 03 July 2018, most of the oil companies have increased their prices by P 0.65 /liter for gasoline, P0.55/liter for diesel and P0.70/liter for kerosene.
Year - to - date total adjustments stand at a net increase of P 5.30 /liter in gasoline and P6.25 /liter in diesel.
As monitored, shown below are the retail prices in Metro Manila beginning July 03, 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||580.00-800.00|
|* RON 95|
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