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.
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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|
|LPG, P/11-kg cylinders||435.00-680.00|
* RON 95
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