WORLD OIL PRICES (August 07-11, 2017 trading days)
Dubai crude increased week-on-week by about US$0.30/bbl. MOPS gasoline increased as well by nearly US$1.00/bbl, contrary to that of diesel that decreased by more than US$0.50 per barrel.
Reasons for the Adjustment
Crude oil prices have increased after official figures showed a larger than expected fall in US crude stocks. Data showing six consecutive weeks of decline in U.S. crude inventories added to optimism that the market was rebalancing. For the week ending August 4, US oil inventories fell by 6.5 million barrels (MMB) to 474.4 MMB. For distillate inventories including diesel, the EIA reported a fall of 1.7 MMB.
Asian gasoline prices stayed elevated on tight supply as well as relatively good demain in Asia and the Middle East. The Asian gasoline market is really that strong with the strengthening of the 92 RON crack.
Several refinery issues in the region led tot he price volatility in the Asian gasoil market. A fire broke out at a motor control center transformer at South Korean producer GS Caltex's refinery; the impact of the incident was yet to be determined.
Supply side issues also weighed on prices, with Libyan production in July hitting its highest level for the year. Further, OPEC reported on Thursday another increase in the group's production, by 173,000 barrels-per-day (MMBPD) in July to 32.87 MMBPD. Rising output from Nigeria and Libya is also denting the oil producers' attempt to limit oil production (both countries are exempted from the output cut as they strive to restore supplies hurt by internal conflicts).
Oil prices rose slightly on friday in volatile trading as the market wieghed lower U. S. crude stocks, Nigerian instability and strong global demand growth against a persistently slow rebalancing.
FOREX: Philippine peso depreciated against the US dollar by P0.23 to P50.37, from P50.60 in preceding week.
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DOMESTIC OIL PRICES
Effective 15 August 2017, most of the oil companies increased their prices of gasoline by P0.45/liter. Both diesel and kerosene decreased by P0.10/liter.
Year-to-date adjustments stands now at net increase of P2.24/liter in gasoline and P1.60/liter in diesel. LPG has a net increase of P2.94/kg.
As monitored, shown below are the retail prices in Metro Manila beginning August 15, 2017.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||450.00-680.00|
* RON 95
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