WORLD OIL PRICES (September 26-30, 2016 trading days)
Dubai crude initially dropped on Monday and went up and down in the next two trading as the two rival producers, Saudi Arabia and Iran, cast signs of a long way from an agreement on a mechanism for freezing production in a meeting later in the week. Saudi Arabia’s energy minister also says an agreement to limit output could come in the OPEC meeting in November.
However, despite reports that Iran had rejected overtures from its regional rival Saudi Arabia, an informal meeting of oil ministers from the 14 OPEC countries reportedly ended with a "preliminary deal to limit production". Qatar's energy minister and current OPEC president Mohammed Bin Saleh Al-Sada was quoted that the group agreed to limit output to between 32.5 million and 33 million barrels a day.
Following the preliminary deal, international oil price benchmarks Brent, WTI and Dubai surged more than five per cent or US$2.00-US$3.00 a barrel. Other oil ministers of OPEC member-countries said it was a "very positive deal", and the decision "was unanimous and without reservations".
The OPEC deal to limit production between 32.5 million and 33 million barrels a day is only a provisional agreement and needs to be finalised in November, when it will be decided which member will make the cuts necessary to meet the promised 700,000 per barrels reduction and by how much. Experts say output allocation may not be easy as Iran, Iraq, Libya, Nigeria have been looking to increase production.
Further, international analysts viewed the collective output cut to have little impact on a fundamental level, considering the underwhelming demand growth and remaining huge overhang of production from the glut of the past two years.
In Asia, gasoline market remained supported by an ongoing unconfirmed shutdown at Shell Singapore's Pulau Bukom refinery. On the demand side, Asia's biggest gasoline importer, Indonesia's state-controlled Pertamina, is estimated to have a monthly gasoline requirement of between 1 million barrels and 2 million.
On the other hand, market participants held mixed views on the near-term outlook for the Asian gasoil market. Platts noted that demand from China and India are expected to gain momentum in the weeks to come, which would translate to lower outflows from India. In contrast, others continued to maintain a bearish view on the gasoil market, due to prevailing supply overhang when North Asian refineries return from scheduled maintenance.
Overall, Dubai crude increased wee-on-week by about US$0.60/bbl. Gasoline and diesel increased as well by nearly US$0.40 and US$1.15 a barrel.
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DOMESTIC OIL PRICES
Effective 04 October 2016, oil companies effected increases of P0.35/li for gasoline and P0.60/li for diesel.
These resulted to corresponding increases in the total year-to-date adjustments of gasoline and diesel to net increase of P3.74/liter and P5.48/liter respectively.
As monitored, shown below are the retail prices in Metro Manila beginning 04 October 2016.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||427.00-632.00|
* RON 95
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