WORLD OIL PRICES (November 21-25, 2016 trading days)
Crude oil prices reverted back to 3-week-ago level as optimism grew for a cut in OPEC production in Vienna on 30 November 2016. Traders bet on the increased likelihood of securing the proposed production cut of up to one million barrels a day, which is expected to help end the long-running supply glut that weighed on prices for two years.
However, crude prices dwindled later in the week as some traders have doubts that the OPEC conference will come up with a concrete agreement. They also believed that even if the producers agree on output cut, it may not be enough to push prices up. Moreover, concerns also emerged that major non-OPEC producers, such as Russia, will not resolve their "simmering disagreement" with the cartel over who should cut production and by how much.
Unease further exacerbated when Saudi Arabia's energy minister, Khalid al-Falih expressed belief that the market would balance itself in 2017 even if producers did not agree a cut. Thus, keeping output at current levels was justified.
In Asia, gasoline prices elevated on prompt demand and relatively tight supplies in the region and the Middle East. Winter arbitrages to Asia from both Europe and the US are closed at this moment. European cargoes are heading to Africa and the Middle East, while US cargoes are drawn to South America.
Similarly, the gasoil market in Asia remained on an uptrend, fuelled by healthy buying interest against a backdrop of gradually tightening supplies. In addition, weaker EFS (Exchange of Futures for Swaps) has resumed opportunities for suppliers to divert cargoes from Asia and the Middle East to the west of Suez that helped to support sentiment for ultra-low sulfur diesel.
Overall, Dubai crude increased week-on-week by nearly US$3/bbl. MOPS gasoline and diesel also increased by about US$3.80 and US$2.80 per barrel, respectively.
FOREX: Philippine peso depreciated anew by P0.55 against the US dollar to P49.89/US$, from P49.34 last week.
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DOMESTIC OIL PRICES
The oil companies implemented a P0.10/liter increase in gasoline. There were no movements in the prices of diesel and kerosene.
The total year-to-date adjustment for gasoline is now at net increase of P4.14 while diesel remains at P5.98/liter.
As monitored, shown below are the retail prices in Metro Manila beginning November 29, 2016.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||424.50-655.50|
* RON 95
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