Oil Monitor as of June 13, 2017


WORLD OIL PRICES (June 5-9, 2017 trading days)

Headlines of the week that Saudi Arabia cut its diplomatic ties with Qatar (a move followed by Bahrain, Egypt, Libya, Yemen and the UAE) provided a temporary support to the market. However, the following news of oversupply sustained, as crude prices dropped over the week by an average of about US$2 per barrel:

  • US-Energy Information Administration data, in the week ending 02 June 2017, showed a weekly builds in its inventory of crude, gasoline and distillate stocks;
  • OPEC May production rose despite very high output compliance from both Saudi Arabia and Angola. Iraqi output rose steeply;
    • Sharp output recoveries also came from Libya and Nigeria, both of which are exempt from the organization's production cut agreement.

As for the products market in Asia, Platts report noted that gasoline was under pressure amid bearish US inventory data. US-EIA data showed gasoline stocks increased week-on-week by 240.3 barrels or 1.4% in the week ending June 2, slightly lower than analysts expected build of 250,000 barrels. On the other hand, Qatar diplomatic crisis is causing severe disruptions in the shipping of clean products with companies across Asia, downsizing their parcels for loading from single ports and the possibility that ship-owners might seek a premium for loadings from Qatar.

For gasoil/diesel, demand from Africa and South Asia continued to draw away some supplies from Asia, Platts said. Africa saw a rise in appetite for low-sulfur gasoil after Ghana agreed to shift to a lower sulfur cap on gasoil to 50 ppm from 3,000 ppm effective July 1.

Overall, Dubai crude decreased week-on-week by more than US$2/bbl. Likewise, MOPS gasoline decreased by about US$2.30 and US$2.50, respectively.

FOREX: The Philippine peso appreciated against the US dollar by P0.28 to P49.49/$, fromP49.77 in previous week.

Other recommended reference sites:


DOMESTIC OIL PRICES

On 13 June 2017, the oil companies implimented another price rollback of P0.80/liter in gasoline, P0.95/liter in diesel and P1.20/liter in kerosene.

Year-to-date total adjustments in gasoline and diesel are both at net decrease of P0.21 and P1.25 per liter, respectively. LPG remains at net decrease of P0.76/kg.

 

As monitored, shown below are the retail prices in Metro Manila beginning 13 June 2017.

Products Price Range Common Price
P/liter
Diesel 27.35-31.46 29.55
Gasoline* 38.95-51.01 43.25
LPG, P/11-kg cylinders 435.00-680.00  

* 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: https://www.doe.gov.ph

Oil Monitor as of June 6, 2017


WWORLD OIL PRICES (May 29-June 2, 2017 trading days)

Crude prices receded this week by an average of about US$2 per barrel primarily due to continued concerns over global oil supply glut, despite OPEC and non-OPEC producers' decision to extend their production cut agreement for nine-months on 25 May 2017.

Reports also stated the following reasons that dragged prices lower this week:

  • Nigeria oil production has been on recovery path recently, following the peace talks initiated by the government in January;
  • Baker Hughes data showed rigs drilling for oil reached 722 Friday, up 197 so far this year and the highest level since April 2015;
  • Rising production in Libya and Nigeria, both of which are exempt from the supply cut deal is adding to doubts about the efficacy of the OPEC production cuts.

In Asia, the week ended an upbeat sentiment in the gasoline market, while fundamentals remained stable. Platts noted that the market is healthy as exports from China, South Korea and India were flowing while refineries were also showing little sign of cutting gasoline run rates. On the other hand, demand from Indonesia and the Middle East was drawing barrels from Singapore and India. Ramadan spurred an uptick demand that is seen to continue through summer.

As for gasoil/diesel, strong Middle East and Indian demand continued to support premiums for ultra-low sulfur grade diesel while supply was limited by on-going refinery turnarounds, which resulted in fewer exports out of North Asia. India is also importing more because of the drought, which should be coming to an end with the monsoon. Demand and supply was balanced for the medium sulfur grade in the region.

Overall, Dubai crude decreased week-on-week by more than US$2/bbl. MOPS gasoline also decreased by almost US$2.00 along with diesel that decreased by about US$2.60/bbl.

FOREX: The Philippine peso appreciated against the US dollar by P0.08 to P49.77/$, from P49.84 in previous week.

Other recommended reference sites:


DOMESTIC OIL PRICES

On 06 June 2017, the oil companies effected price rollbacks of P0.55/liter in gasoline and P0.90/liter in diesel and kerosene.

Year-to-date, the total adjustments in gasoline and diesel are at net increase of P0.59 and net decrease of P0.30 per liter, respectively. LPG remains at net decrease of P0.76/kg.

 

As monitored, shown below are the retail prices in Metro Manila beginning 6 June 2017.

Products Price Range Common Price
P/liter
Diesel 28.25-32.36 30.50
Gasoline* 39.75-51.81 44.05
LPG, P/11-kg cylinders 435.00-680.00  

* 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: https://www.doe.gov.ph

Oil Monitor as of May 30, 2017


WORLD OIL PRICES (May 22-26, 2017 trading days)

Crude prices increased further for the second consecutive week on reports of strong inventory draw in the US and as the market expected OPEC-led supply cuts that overshadowed the White House proposal to sell half of U.S. petroleum reserves, threatening a future glut.

However, the decision  of  OPEC on Thursday, 25  May 2017, to  roll over  its supply cut agreement by nine months, instead of making deeper or longer supply cuts brought crude prices lower by more than US$2 a barrel.   However, traders spotted buying opportunities following the Thursday's plunge, which capped the decrease as oil complex somehow rebounded in the next trading day.

In Asia, the week ended with a moderate gasoline market as the oil complex failed to find support in OPEC news out of Vienna, where OPEC members and their non-OPEC counterparts announced they would extend their current supply cut agreement.  Platts added that fundamentals remained balanced in the region, with supply sufficient and demand supported in the lead up to Ramadan. More supply is also expected from Europe in the absence of an outlet to the US.

On the other hand, firm buying demand from India for Ultra Low Sulfur Diesel in the Persian Gulf pushed prices higher.  India's spot demand for 40 ppm sulfur gasoil has been the main reason for the rise in ULSD cash differentials in the Persian Gulf and Singapore. In April, India moved its diesel specification to Bharat Stage IV vehicle emission and fuel standards, capping sulfur limits for all diesel vehicles in the country at 50 ppm.  Reports further disclosed that spot demand is due to the upgrading of refinery nits for 50 ppm production, hence capacities are down and India needs to import to cover the shortfall.

Overall, Dubai crude increased week-on-week by more than a dollar. MOPS gasoline and diesel likewise increased by about US$1.00 and US$2.00 per barrel, respectively.

FOREX: The Philippine peso depreciated against the US dollar by P0.08 to P49.84/$, from

P49.77 in previous week.

Other recommended reference sites:


DOMESTIC OIL PRICES

         On 30 May 2017, the oil companies effected a  per  liter  increase  of  P0.55  in  gasoline, P0.75 in diesel and P0.85 in kerosene.Year-to-date, corresponding  total adjustments in gasoline and diesel are now at net increase of P1.41 and P0.60 per liter.. LPG remains at net decrease of P0.76/kg.

As monitored, shown below are the retail prices in Metro Manila beginning 30 May 2017.

 

Products

Price

Range

Common

Price

P/liter

Diesel

28.05-40.95

30.80

Gasoline*

39.40-49.21

44.60

LPG, P/11-kg

cylinders

 

435.00-680.00

 

*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 May 23, 2017


WORLD OIL PRICES (May 15-19, 2017 trading days)

Oil prices erased earlier losses after majority of the OPEC oil producers expressed support on the Saudi-Russian proposal to extend the production cuts until March 2018.  According to Algeria’s Energy Minister Noureddine Boutarfa,  “most OPEC countries back the  Saudi- Russian idea to roll over the cuts for another nine months in a bid to draw down persistently high oversupply and lift oil prices”.

Reports have stated that Algeria backs the proposal and is optimistic that a deal could be reached.   Although a small producer within OPEC, Algeria played an important role in bringing together the diverse group of the cartel’s members to talk and finally reach the initial deal to collectively curb production.

A weaker dollar also provided support in the week’s price gains.  It further spiked following the release of US-Energy Information Administration data with notable relief that there had been a draw in inventories, contrary to earlier API data of a stock-build.   The EIA data recorded a draw of 1.75 million barrels which was a smaller than consensus forecasts for a draw of over 2.0 Million barrels.

In Asia, Platts noted that the gasoline market was relatively stable in early trading during the week, but was observed to have strengthened as the week ended, as summer season provided an uptick in demand from Indonesia’s Pertamina for June-loading cargoes.  On the other hand, the on-going refinery maintenance supported the gasoil market, and kept supply of 10 ppm sulfur gasoil tight in the region; thus keeping premiums elevated.     Similarly, inventory of the 500 ppm sulfur grade was said to be limited in the region, curbed by the current refinery turnarounds in North Asia.

Overall, Dubai crude increased week-on-week by about US$2/bbl. MOPS gasoline and diesel increased as well by almost the same level as Dubai crude.

FOREX: The Philippine peso appreciated against the US dollar by P0.13 to P49.77/$, from

P49.90 in previous week.

Other recommended reference sites:


DOMESTIC OIL PRICES

         On 23 May 2017, the oil companies effected a per liter increase of P0.65 in gasoline, P0.60 in diesel and P0.70 in kerosene. Correspondingly, year-to-date total adjustments are now at net increase of P0.59/liter for gasoline and net decrease of P0.15/liter for diesel.  LPG remains at net decrease of P0.76/kg.

As monitored, shown below are the retail prices in Metro Manila beginning 23 May 2017.

 

Products

Price

Range

Common

Price

P/liter

Diesel

27.30-40.19

30.05

Gasoline*

38.85-48.66.85

44.05

LPG, P/11-kg

cylinders

 

435.00-680.00

 

*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 May 16, 2017


WORLD OIL PRICES (May 8-12, 2017 trading days)

Early this week, crude prices sustained the previous week declines, but slowly recovered as the week ended on statements that major oil-producing countries are in near agreement to extend supply cuts into 2018.

OPEC and the 11 non-OPEC producers, including Russia, who pledged to reduce output, will gather May 25 in Vienna to review and possibly extend their six-month agreement, which is set to expire at the end of June.

Relatedly, analysts are of the opinion that U.S. production could still threaten to disrupt the market balance unless OPEC cuts were deepened, thus the proposal to extend production cuts into 2018.

U.S.  production  reportedly  soared  by  10  percent  since  mid-2016  to  9.3  million  bpd. Moreover, reports also say that North Sea oil production, generally seen in terminal decline, is expected to jump by a net 400,000 bpd in the next two years as producers improve efficiency.

In Asia, gasoline market sentiment was fairly stable with few cargoes moving from North Asia and Singapore to the Middle East. As of Friday, gasoline market was stronger following an inventory drawdowns in the US and UAE. On the other hand, on-going refinery maintenance and strong domestic demand in India reduced availability of 10 ppm sulfur diesel in the region.  These added to lesser supply of gasoil from Japan. However, market sources are seeing overall demand for gasoil as steady to weak, and that supply is expected to increase as regional refineries return from turnarounds.

Overall, Dubai crude had minimal week-on-week decline by about US$0.30/bbl. MOPS gasoline increased by almost US$1.00/bbl while MOPS diesel remained at previous week level.

FOREX: The Philippine peso appreciated against the US dollar by P0.05 to P49.90/$, from

P49.95 in the previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES

On 16 May 2017, the oil companies implemented a P0.30/liter increase in gasoline but there was no movement in the price of diesel and kerosene. Year-to-date, total adjustments for gasoline is at net decrease of P0.06/liter. Diesel and LPG remained at net decrease of P0.75/liter and P0.76/kg, respectively.

As monitored, shown below are the retail prices in Metro Manila beginning 16 May 2017.

 

Products

Price

Range

Common

Price

P/liter

Diesel

26.70-31.91

30.15

Gasoline*

37.65-49.80

45.40

LPG, P/11-kg

cylinders

 

435.00-680.00

 

*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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