Oil Monitor as of 21 March 2018


WORLD OIL PRICES  (March 12-16, 2018 trading days)

Dubai crude increased week-on-week by US$0.25 per barrel. MOPS diesel increased as well by nearly US$0.75 contrary to  gasoline that decreased by US$0.25 per barrel.

Reasons for the Adjustment

  • Asian gasoline market was relatively stable on ample supply coming out of China and South Korea. Limited buying interest from regional demand centers in contrast to the current ample supply from Northeast Asia demonstrated a fairly quiet market. Supply continued to outstrip demand.

  • For gasoil/diesel, medium sulfur grade was supported by limited supply in view of ongoing refinery maintenance in Asia and steady demand. Meanwhile, demand for ultra-low sulfur diesel was relatively weak, with more cargoes coming from the Persian Gulf.

  • Potential OPEC trouble is possible as Iran reopens the debate over when to signal an end to the OPEC current production cut deal along with Russia Arguments floated to end it soon if crude bursts through the $70/b level

    • Iranian Oil Minister Bijan Zanganeh insists Saudi is onboard with the idea, but his message contradicts recent signals of longer term cooperation between OPEC and producers outside the group led by Russia.

    • OPEC next meeting is on June 22 in Vienna, but the monitoring committee chaired by Saudi energy minister Khalid al-Falih is said to meet in Saudi Arabia in April to review compliance with the cuts and assess market conditions. Saudi Arabia is determined to maintain its production cuts through the end of the year.

  • US oil shale output has surged from 6.52 MMBD to 7.9 MMBD in December 2017 - or almost 1.4 MMBD, the US-EIA has estimated.

FOREX:  The value of Philippine peso per US dollar depreciated by P0.03 to P52.04, from P52.00 in previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective 20 March 2018, most of the oil companies decreased the price of diesel by P0.40/liter while kerosene was decreased by P0.55/liter. There was no movement in the price of gasoline.

Year-to-date adjustment in diesel stands now net increase of P1.55/liter and kerosene at P1.35/liter. Gasoline remains at net increase of P1.05/liter.

As monitored, shown below are the retail prices in Metro Manila beginning March 20, 2018.

Products Price Range Common Price
P/liter
Diesel 35.85-42.40 41.65
Gasoline* 46.87-56.77 52.77
Kerosene 41.77-51.95 45.79
* 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: https://www.doe.gov.ph

 

Oil Monitor as of 14 March 2018


WORLD OIL PRICES  (March 5-9, 2018 trading days)

Dubai crude decreased week-on-week by more than a dollar per barrel. MOPS gasoline and diesel also decreased by about US$1.40 and US$1.60 per barrel, respectively.

Reasons for the Adjustment

  • The Asian gasoline market was largely stable amid balances in regional fundamentals. There were relatively “heavy supplies” coming from China and South Korea. Demand this month is seen to be lower than February, thus the continued weakening of the 92 RON gasoline crack reflected the tepid spot demand as observed by the market participants within the region.

  • For gasoil/diesel, weak demand for the 10 ppm grade continued to weigh on the market. While the regional refinery maintenance capped supply, a closed arbitrage to the West saw cargoes moved from the Persian Gulf to Asia. Middle distillate stocks rose in Singapore. In Northwest Europe, heating fuel demand jumped over the last couple of weeks as unusually low temperatures settled across the continent. Demand for 50 ppm sulfur gasoil, for heating purposes, was particularly strong in Germany, Belgium and the Netherlands, leading to substantial inventory draws.

  • Crude oil prices was relatively steady supported by healthy demand, after falling the previous day due to higher US crude production and rising inventories. The slight recovery came when US crude inventory build was not as big as expected during the current seasonal demand lull at the end of winter, when many oil refineries shut down for maintenance.

    • The increase in US crude inventory stockpiles and output, threatens to offset supply cuts by the OPEC, Russia and other producers. With US output outpacing demand growth, analyst say oil cartel OPEC and Russia, who together with some other producers have been withholding production in order to prop up prices, are under pressure to keep up the supply restraint, even at the cost of market share.

FOREX:  The value of Philippine peso per US dollar depreciated by P0.04 to P52.00, from
P51.96 in previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective 14 March 2018, most of the oil companies have rollbacks in gasoline by P0.35/liter, diesel P0.55/liter and kerosene by P1.20/liter.

Year-to-date adjustment stands now at a net increase of P1.05/liter for gasoline, P1.15/liter for diesel and P1.90/liter for kerosene.

As monitored, shown below are the retail prices in Metro Manila beginning March 13, 2018.

Products Price Range Common Price
P/liter
Diesel 35.25-42.00 40.30
Gasoline* 46.87-56.77 52.42
Kerosene 42.32-52.50 46.34
* 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: https://www.doe.gov.ph

 

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