WORLD OIL PRICES (June 18-22, 2018 trading days)
Dubai crude has decreased week-on-week by around US$ 2.50/bbl. MOPS gasoline and diesel have also decreased by almost US$ 4.00/bbl. and 3.00/bbl. respectively.
Reasons for the Adjustment
Asian gasoil (diesel) market
Market remained weak due to monsoon season in India and Southeast Asia, as well as rising supplies as refineries complete turnarounds in the region. Demand in the Middle East was holding up well for ULSD, supported by the peak summer season and regular flows to Europe. Indonesia gasoil import fell while Northwest China’s gasoil inventory stocks had been the largest build in the past month, more than double month on month, the highest in 12 months.
Weak market was seen amid higher supply and slowing demand. The monsoon season in Southeast Asia and India, China's fishing ban over May to August in the South China sea weighed on demand.
Asian gasoline market
Market activity showed further signs of weakening early Thursday remained muted with limited incremental regional demand have been observed, especially from Southeast Asia’s largest importer Indonesia. Similarly in the Middle East/Persian Gulf, flat/lackluster market activity was observed amid the Eid holiday season.
Factors affecting crude oil prices
Tensions between Iran and Saudi Arabia broke out days before OPEC's meeting on Friday in Vienna, with Tehran indicating it would probably not abide to the cartel's plans to cut production. While Russia and Saudi Arabia agreed to increase outflow by around 1.5 million barrels a day to steady the market as US sanctions on Iran and political instability in Venezuela are expected to affect global production.
A potential trade war between the US and China could seriously impact on demand. Meanwhile, production in the US remains high.
FOREX: Week-on-week value of Peso appreciated against the US dollar by P0.29 to P53.11 from P53.40 in the preceding week.
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DOMESTIC OIL PRICES
Effective 26 June 2018, most of the oil companies have decreased their prices by P1.15/liter for gasoline,P0.90/liter for diesel and P0.85/liter for kerosene.
Year-to-date total adjustments stand at a net increase of P4.65/liter in gasoline and P5.70/liter in diesel.
As monitored, shown below are the retail prices in Metro Manila beginning June 26, 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||570.00-790.00|
|* RON 95|
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