WORLD OIL PRICES (May 21-25, 2018 trading days)
Dubai crude has increased week-on-week by more than US$1.00/bbl. MOPS gasoline by almost US$2.00/bbl and diesel have also increased as well by about US$0.70/bbl..
Reasons for the Adjustment
Asian gasoil (diesel) market
Asian gasoil/diesel market also remained balance and stable, with demand stable amid sufficient supply. Gasoil demand also rising heading into summer driving season. Supply is expected to rise as refineries return from refinery maintenance season.
Asian gasoline market
Outlook in the Asian gasoline market remained optimistic on continued strengthening of regional fundamentals, active spot buying and tightening supply. Fundamentals in the Persian Gulf were also heard to be firming with spot demand picking up/ improving incremental demand.
Factors affecting crude oil prices
The Organization of Petroleum Exporting Countries and its allies have eliminated the oil-inventory surplus that’s weighed on prices since 2014. They indicated last month that supply curbs should continue as planned until the end of the year. That position has been complicated by renewed U.S. sanctions on Iran and Venezuela’s collapsing oil industry, which threaten to tighten a market where crude is already trading near a three-year high.
Concern about supply from Iran and Venezuela, following new US sanctions, had pushed both Brent and WTI to multiyear highs, Brent breaking through the $80 threshold last week for the first time since November 2014.
Libya, an OPEC member cut its oil production by about 120,000 barrels a day as unusually hot weather prompted power problems. The country produced about 90 mil barrels per day in the past year.
FOREX: Week-on-week value of Peso depreciated against the US dollar by P0.13 to P52.44 from P52.32 in the preceding week.
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DOMESTIC OIL PRICES
Effective 29 May 2018, most of the oil companies have increased their prices by P0.65/liter for gasoline, P0.35/liter for diesel and kerosene by P0.45/liter.
Year-to-date total adjustments stand at a net increase of P7.35/liter in gasoline and P7.65/liter in diesel.
As monitored, shown below are the retail prices in Metro Manila beginning 29 May 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||544.00-754.00|
|* RON 95|
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