Oil Monitor as of January 10, 2016


 

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
P/liter
Diesel 27.95-33.80 31.00
Gasoline* 39.50-48.60 46.68
LPG, P/11-kg cylinders 471.00-690.00  

* RON 95

For more information, call the

Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph

Oil Monitor as of January 03, 2017


 

WORLD OIL PRICES (December 26-30, 2016 trading days)

While crude oil prices slightly declined in the last trading day of the year, crude generally posted significant monthly gain in December, supported by the impact of the planned production cut from OPEC and non-OPEC countries.

OPEC and non-OPEC members’ agreement to slash their production by around 1.8 million barrels a day in their latest meeting in Vienna on November 27 gave huge support to the current price levels. Though there are some concerns over the physical implementation of the output cut plan, it is highly expected that producers will stand by their commitments, as most of these producers are desperately seeking higher prices to stabilize their economies.

Reportedly, a poll conducted by Reuters showed crude oil prices to steadily increase towards $60 a barrel by the end of 2017, with further upside capped by a stronger dollar exchange rate, a possible recovery in the North American output, and likely noncompliance with planned output.

In Asia, the week ended with a largely stable gasoline market. However, Platts noted that an upward momentum could lose steam in the coming weeks as the market rebalances in view of higher refinery run rates in January, increasing supply in the region. Moreover, increased arbitrage inflows from Northwest Europe and the US in January could also put pressure on the Asian market. For gasoil, Platts stated of a thin market activity as traders expects demand for 500ppm sulphur gasoil to remain stable in January.

Overall, Dubai crude increased week-on-week by US$1.28/bbl. MOPS gasoline also increased by more than US$2/bbl along with diesel that increased by almost US$2/bbl.

FOREX: Philippine peso appreciated against the US dollar by P0.16 to P49.80/US$, from P49.96 last week.

 

Other recommended reference site:


DOMESTIC OIL PRICES

Effective 03 January 2016, oil companies implemented an increase of P0.70/liter in gasoline, P0.60/liter in diesel and P0.55/liter in kerosene.

Also, LPG increased by P4.15 to P4.18 per kilogram due to the month-on-month increase in LPG Contract Price by US$69/MT to US$477/MT.

As monitored, shown below are the retail prices in Metro Manila beginning 03 January 2017.

Products Price Range Common Price
P/liter
Diesel 27.85-33.70 30.90
Gasoline* 39.50-48.60 46.68
LPG, P/11-kg cylinders 471.00-690.00  

* RON 95

For more information, call the

Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph

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