Oil Monitor as of 27 February 2018


WORLD OIL PRICES (February 19-23, 2018 trading days)  

Dubai crude increased week-on-week by about US$1.60 a barrel. MOPS gasoline and diesel increased as well by nearly US$1.40 and US$2.00 per barrel.

Reasons for the Adjustment

  • Oil prices hit their highest level in nearly two weeks Monday, aided by a recovery in the global equity market and tensions in the Middle East, tempered by growing U.S. production.
    • European shares rose for a fourth straight session, with global stocks set for a sixth session of gains, following a sell - off triggered by fears of creeping inflation and higher borrowing costs, Reuters reported.
    • Crude inventories had been forecast to rise 1.8 million barrels, as stocks seasonally increase when refineries cut intake to conduct maintenance.
  • A strengthening dollar, which hit a six - day high, however, counterbalanced on oil prices. A more robust dollar makes oil and other dollar - denominated commodities more expensive for holders of other currencies, thus result ing to lower demand and prices.
  • After the increases in the Monday and Tuesday trading, oil prices fell on Wednesday, weighed down by a rebound in the US dollar from three - year lows last week, and by an expected rise in US crude production. US West Texas Intermediate (WTI) crude futures were down 60 cents, and Brent crude by 48 cents, from their respective last settlements. However, the effect on the local market remains high as Philippine Peso remains depreciated.
  • Oil prices surged again on Friday after the shutdown of a key oilfield in Libya. Crude rebounded from an early loss after reports of the shutdown of the El Feel oilfield in Libya, which produces 70,000 bpd. Production in this OPEC member country has been running at about 1 mbpd, although it remains volatile due to unrest in the country.
  • Oil is also boosted by upbeat comments from Saudi Arabia that an OPEC - led effort to erode stockpiles through output curbs is “working”. In the latest OPEC comment that a supply cut deal led by th e OPEC and by NON - OPEC members is working, Saudi Arabia's Energy minister said that he expected inventories to keep declining this year: "The oil markets, it's clear, are rebalancing. Many agencies have documented the decline in inventories and I think tha t'll continue in 2018".

FOREX: The value of Philippine peso per US dollar depreciated by P0.25 to P52.14, from P51.90 in previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective 27 February 2018, most of the oil companies implemented a n in crease in gasoline by P0.65/liter, diesel by P0.85/liter and kerosene by P1.15/liter.

Y ear-to-date, total adjustments are currently at a net increase of P 0.90/liter for gasoline, P1.40/liter for diesel and P2.30/liter for kerosene.

As monitored, shown below are the retail prices in Metro Manila beginning February 27, 2018.

Products
Price Range
Common Price

P/liter

Diesel
35.50-41.58
40.80

Gasoline*
46.25-56.62
51.97

Kerosene
42.72-52.90
48.16

* 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 21 February 2018


WORLD OIL PRICES (February 12-16, 2018 trading days)  

Dubai crude decreased week-on-week by about US$3.00/bbl. MOPS gasoline de creased as well by nearly US$ 3.90 along with diesel and kerosene by about US$4.20 and US$3.90 per barrel, respectively.

Reasons for the Adjustment

  • Traders said gasoline market was oversupply behind the off-peak season. Refineries around the world are also currently operating at regular levels.

  • Fundamentals in the Asian gasoil market were largely unchanged, with supply expected to be capped ahead of maintenance season in the region. Supply-demand balance is anticipated to be stable in the near term.

    • Demand remains steady from Sri Lanka, Vietnam and Pakistan, while some buyers held back purchases on falling oil prices.

    • Recently, many traders delayed 10 ppm gasoil lifting, leaving the market with high inventory, which attributed to the declining crude prices.

    • On the medium sulphur grade, demand was slightly better, supported by bunker end-users' requirements for marine gasoil. Supply was sufficient, as a closed arbitrage to Europe kept barrels in Asia.

  • Number of rigs drilling for oil in the US rose by 26 to 791. The oil rig count rose steadily from May 2016 until July 2017, more than doubling over that period, but then plateaued around 750. After three straight weekly increases, the rig count now stands at its highest level since spring 2015, when drilling activity was plunging.

  • The International Energy Agency warn ed that global supply could grow faster than demand this year.

FOREX: Philippine p eso per US dollar de preciated by P0.45 to P51.90, from P51.45 in previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES      

Effective 18 February 2018, most of the oil companies implemented a decrease in the price of gasoline by P1.05/liter, diesel by P1.25/liter and kerosene by P1.20/liter.

Year-to-date, tota l adjustments stands now at net increase of P0.25/liter for gasoline, P0.55 /liter for diesel and P1.15 /liter for kerosene.

As monitored, shown below are the retail prices in Metro Manila beginning February 18, 2018.

Products Price Range Common Price
P/liter
Diesel 34.65-40.73 39.95
Gasoline* 45.60-55.97 51.32
Kerosene 41.57-51.75 47.01
* 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

 

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