WORLD OIL PRICES (January 2-6, 2016 trading days)
The week-on-week average price of Dubai crude lifted higher, relatively due to the recent news that Saudi Arabia had cut production to meet OPEC's agreement to reduce production. Nonetheless, market analysts believed that “market sentiment will likely hinge entirely on the compliance of other OPEC and non-OPEC nations”.
Relatedly, the U.S. government report of a big increase in U.S. gasoline and distillate inventories outweighed on the price up-tick. The inventory upsurge reportedly resulted from the ramp-up production to reduce crude inventories, a typical year-end practice to avoid higher taxes. The report also disclosed that the U.S. crude inventories fell sharply by 7.1 million barrels in the week through Dec. 30, the U.S. Energy Information Administration noted.
Another reason that balances the oil market is Iran’s strategy to sell off crude oil that has been sitting in offshore storage since the end of international sanctions. Moreover, U.S. energy companies last week added oil rigs for a tenth week in a row, extending the drilling recovery into an eighth month, as crude prices remained at levels at which many U.S. drillers can operate profitably. Both signified additional supply.
In Asia, Platts noted of a stable gasoline market fundamentals, with continued robust demand in Southeast Asia and continuous supplies. As for gasoil, the market continued to gain ground, fuelled by fresh spot requirements for the middle distillate including heating fuels.
Overall, Dubai crude increased week-on-week by almost a dollar. Meanwhile, MOPS gasoline remained at the same level as the previous week, while diesel increased by nearly US$0.50/bbl.
FOREX:Philippine peso appreciated by P0.17 against the US dollar to P49.63/US$, from P49.80 last week.
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DOMESTIC OIL PRICES
Effective 10 January 2017, oil companies implemented a P0.10/liter increase in diesel and P0.15/liter decrease in kerosene. There was no movement for gasoline prices.
Total adjustment to-date in 2017 are P0.70/liter for both diesel and gasoline.
As monitored, shown below are the retail prices in Metro Manila beginning 10 January 2017.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||471.00-690.00|
* RON 95
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