Oil Monitor as of 18 July 2017


WORLD OIL PRICES (July 10-14, 2017 trading days) 

Crude prices were sharply lower this week by an average of about six percent, as a rise in U.S.crude production and a climb in oil rigs reactivated concerns that OPEC-led efforts to bring balance the market are ruined.

Baker Hughes disclosed its latest data stating that the number of active U.S. oil rigs climbed by 7 to 763 rigs. The data contradicted some expectations that the rig count would continue to fall, following the previous week’s retreat, which marked the first decline since January.

Furthermore, the U.S. Energy Department Administration’s report of a weekly rise in the country’s crude production pulled crude benchmark-WTI toward their lowest finish in nearly two weeks.

The crude production gains from Libya and Nigeria, the two OPEC members exempt from the deal in order to steer oil revenue, likewise weighed on the week’s price decline.  OPEC economists in their monthly market report for July said that, combined, Nigeria and Libya were adding about a quarter million barrels of oil per day to the market, while other member states scale back.

Gasoline market in Asia Pacific was referred to as weak as supply is expected to outstrip demand in the near term.  Even as prices continued to fall, Platts noted that the market has not yet bottomed out and there is still some way down. Gasoline cargoes were heard coming to Asia from the EU but data from International Enterprise Singapore showed that as of July 12, no cargoes have arrived directly from Europe to Singapore. Cargoes are perceived to be bypassing Singapore.

As for gasoil, the market remained supported by increased buying interest and the likelihood of arbitrage arrivals.  Middle East and India remained the countries to have high demand for gasoil.  Shortage of the middle distillate, fuelled by several refinery shutdowns for maintenance and upgrade works, has pulled surplus barrels into region. On the supply front, market participants reiterated that supply was tight, especially for prompt/spot barrels.

Overall, Dubai crude decreased week-on-week by about US$1.40/bbl.  MOPS gasoline and diesel decreased as well by US$0.65 and US$1.90 per barrel, respectively.

FOREX: The Philippine peso depreciated further against the US dollar by P0.06 to P50.62, from P50.56 in previous week.
 
Other recommended reference sites: 


DOMESTIC OIL PRICES   

Effective 18 July 2017, the oil companiesimplemented price rollbacks of P0.20/liter for gasoline and P0.60/liter for diesel.  Kerosene also decreased by P0..50/liter.

Year-to-date, both gasoline diesel have net decrease of P0.45 and P0.25 per liter, respectively. LPG has net decrease of P2.41/kg.   


As monitored, shown below are the retail prices in Metro Manila beginning June 20, 2017.
Products Price  Common 
Range Price
P/liter
Diesel 26.87-32.41  30.80
Gasoline* 36.70-47.61  43.00
LPG, P/11-kg cylinders 415.00-660.00  

* 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 11 July 2017


WORLD OIL PRICES (July 3-7, 2017 trading days)  

Prices of Dubai crude and petroleum products spiked during the week by an average of about US$2/bbl mainly due to reports on the following:

  • Declines in U.S. crude and European product stockpiles; 

  • U.S. crude stocks plunged almost three times more than forecast in the latest week 

  • US gasoline inventories decreased unexpectedly 

  • Total product demand over the last month averaged over 20.7 million barrels per day, up by 2.8% from the same period last year; and 

  • Saudi Arabia cutting back shipments of crude oil to the United States

These have supported speculations of some analysts that global demand is stronger than people thought it was going to be, and that is having a net positive effect on prices.

Similarly, the Asian gasoline market turned slightly bullish after the US-Energy Information Administration released supportive stock data. The data showed US gasoline stocks declining by 3.7 million barrels in the week ended June 30. This caused into US implied gasoline demand increased by 0.17 million barrels to 9.71 million barrels over the same period.

Gasoil market in the region is equally bullish, supported by the demand from India.  Upgrading works at several Indian refineries since May had led to a shortage of the middle distillate, drawing surplus barrels from the region.  

Overall, Dubai crude increased week-on-week by about US$2/bbl along with MOPS gasoline; diesel increased by about USS$3 per barrel. 

FOREX: The Philippine peso depreciated against the US dollar by P0.16 to P50.56/$, from P50.40 in previous week. 

Other recommended reference sites: 


DOMESTIC OIL PRICES    
 
Effective 11 July 2017, the oil companies implemented an increase of P0.70/liter for gasoline and P1.20/liter for diesel.  Kerosene was also increased by P0.90/liter. 

Year-to-date, gasoline has net decrease of P0.26/liter while diesel has net increase of P0.35/liter. LPG has net decrease of P2.41/kg.


As monitored, shown below are the retail prices in Metro Manila beginning June 20, 2017.
Products Price  Common 
Range Price
P/liter
Diesel 27.47-33.01  31.40
Gasoline* 36.90-47.81  43.20
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 20 June 2017


WORLD OIL PRICES (June 12-16, 2017 trading days)

Talks of oil supply glut reverted prices higher by about half a dollar Monday, but have seesawed in the next trading days on mixed news of emerging fresh demand for petroleum products from the Middle East and in the region. 

Other factors that have predominant effects to the market were as follows:

  • OPEC report of an increase in its production for May despite a supply cut agreement and said the oil market was rebalancing more slowly than expected;
  • Pronouncement of leading energy authority that the world’s oil glut is seen to persist until next year despite the efforts by major producers to shore up the oil price by cutting output; and
  • High global inventories and increasing doubts over OPEC’s ability to comply with the agreed output cuts.

In Asia, the week ended with mixed sentiment in gasoline and gasoil market as both bullish and bearish factors continued to exert pressure.  While gasoline market still relatively strong, analysts say that it is affected by the weak fundamentals in Europe and the US.  As for gasoil, emerging regional demand for both low and medium sulfur gasoil grades have continued to sustain sentiment, while surplus barrels remained trapped within the region.   Platts further noted that the strong EFS continue to keep a lid on cross-regional flows from Asia and the Middle East to the West of Suez.

Overall, Dubai crude decreased week-on-week by more than a dollar.  MOPS gasoline and diesel likewise decreased by more than US$2 and about US$0.50 per barrel, respectively.

FOREX: The Philippine peso depreciated against the US dollar by P0.12 to P49.61/$, from P49.49/$ in the previous week.

Other recommended reference sites:


DOMESTIC OIL PRICES   

Effective 20 June 2017, the oil companies implemented a price decrease of P0.70/liter for gasoline, P0.10/liter for diesel and P0.15/liter for kerosene.

Year-to-date, gasoline and diesel  have net decrease of P0.91 and P1.35 per liter respectively. LPG remains at net decrease of P0.76/kg.  


As monitored, shown below are the retail prices in Metro Manila beginning June 20, 2017.
Products Price  Common 
Range Price
P/liter
Diesel 26.10-31.31 29.45
Gasoline* 36.25-47.16 46.95
LPG, P/11-kg cylinders 435.00-680.00  
*RON 95    

* 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 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

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