WORLD OIL PRICES (June 4-8, 2018 trading days)
Dubai crude has decreased week-on-week by around US$ 0.30/bbl. MOPS gasoline has also decreased by almost US$ 1.65/bbl. and diesel by about US$ 1.50/bbl.
Reasons for the Adjustment
Asian gasoil (diesel) market
Asian gasoil market remained pressured by rising supplies, stemming from higher outflows from India due to a seasonal lull in domestic demand, and from the Middle East and North Asia following completion of scheduled maintenance have all contributed to the length.
Asian gasoline market
The Asian gasoline sentiment remained bearish, amid concerns over the Asian markets' ability to consume surplus barrels in region, as regional demand is expected to ease after the Eid holidays in June.
Factors affecting crude oil prices
The oil complex fell despite a weaker dollar and stronger US equities, extending recent declines as traders prepare for the potentially more supply coming from OPEC producers and Russia.
In Kuwait City, an "unofficial consultative meeting" involving Gulf oil ministers from Saudi Arabia, the UAE, Kuwait and non-OPEC producer Oman failed to yield any clues on production strategy ahead of a pivotal gathering scheduled for June 22 in Vienna. The meeting was arranged on short notice after Saudi Arabia and Russia both indicated output limits under the OPEC-led production agreement could be eased before the expiry at the end of 2018.
- In Venezuela, state-run oil company PDVSA is having difficulty meeting even basic supply commitments. The oil market is grappling with an economic and political crisis that has put oil production into free fall this year, helping OPEC in its production cut targets but also threatening to push the country further into chaos.
FOREX: Week-on-week value of Peso appreciated against the US dollar by P0.08 to P52.52 from P52.59 in the preceding week.
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DOMESTIC OIL PRICES
Effective 12 June 2018, most of the oil companies have decreased their prices by P0.55/liter for gasoline and P0.60/liter both for diesel and kerosene.
Year-to-date total adjustments stand at a net increase of P5.60/liter in gasoline and P6.15/liter in diesel.
As monitored, shown below are the retail prices in Metro Manila beginning June 12, 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||570.00-790.00|
|* RON 95|
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