WORLD OIL PRICES (June 8-12, 2015 trading days)
The trading week began with crude oil prices posting consistent increases, reversing declines in previous week as OPEC left production level unchanged at 30 million barrels per day in their 05 June 2015 meeting.
The price run-up was supported by the following reports:
• US peak demand season. Expectations that demand for gasoline and diesel will pick up this month with the start of the peak season for road travel in the United States;
• Bets across the oil market. Bets made by bullish investors for another weekly drop in U.S. stockpiles;
• EIA’s greater demand forecast. U.S. Energy Information Administration (EIA) forecast for this year's oil demand was at 380,000 barrels per day, up from 340,000 bpd previously;
• Drop in US inventory. For the week ending June 5, the US Department of Energy's inventory report showed US crude stocks fell 6.8 million barrels; gasoline supplies dropped 2.9 million barrels. Crude supplies fell for the sixth straight week;
• Fall in Chinese inflation data, Chinese inflation fell to 1.2 percent in May, suggesting the world's number two economy is stalling, potentially prompting more monetary stimulus.
Reports of significant amount of crude supply remaining in the market pulled prices lower by over a dollar last Thursday and Friday.
In the Asian front, Platts reported that gasoline sentiment took a hit Friday as traders became more cautious after the 92 RON gasoline crack set a record high Thursday. The retreat was in line with a broader fall in the energy complex. Nevertheless, strong spot gasoline demand and turnarounds at refineries maintained the relative tightness in the Asian gasoline market.
As for gasoil/diesel, market remains pressured by excess supply as refineries started to return from scheduled maintenance and running at higher rates due to good margins, Platts said.
Overall, Dubai crude price increased week-on-week by US$.55/bbl. MOPS diesel remained at last week’s average while gasoline increased by around US$2.50/bbl.
FOREX: Peso/US$ rate depreciated by P0.28 to P45.03, from P44.75 in previous week.
Other recommended reference sites: (1) http://www.aip.com.au/pricing (2) http://www.med.govt.nz/ers/oil_pet/prices/prices.html
DOMESTIC OIL PRICES
Effective today, 16 June 2015, most of the oil companies implemented a P1.05/liter increase in gasoline and P0.15/liter in diesel and kerosene.
Year-to-date total adjustment rose to net increases of P5.69/liter for gasoline and P1.06/liter for diesel. LPG remained with net decrease of P6.60/kg.
As monitored, shown below are the retail prices in Metro Manila beginning 9 June 2015..
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||480.00-680.00|
* RON 95
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