Oil Monitor as of 07 September 2017

Originally posted at DOE website

WORLD OIL PRICES (August 28 – September 01, 2017)

Dubai crude has decreased week-on-week by more than US$ 0.40/bbl. MOPS gasoline, kerosene and diesel all have increased by over US$ 1.00 per barrel.  Gasoline futures surged more than 13 per cent on Thursday  as almost a quarter of US refining capacity remained offline.

Reasons for the Adjustment

  • Crude oil prices rose during the trading week, contrary to the expectations of the OPEC-member countries, as oil traders focused more on Hurricane Harvey’s hit on oil demand than the impact on supply disruptions.
  • Reuters reported of spreading concerns over falling demand in the world’s top oil consuming country after tropical storm Harvey knocked out almost a quarter of the refineries in Texas.
  • Hurricane Harvey brought record flooding to the U.S. oil heartland of Texas and has paralyzed at least 4.4 million barrels per day (mbpd) of refining capacity.
  • Analysts called the status of US refineries a key to oil prices, i.e.:
    • Bank of America Merrill Lynch: “The disruptions in recent days may delay the ongoing global crude oil rebalancing process”
    • Goldman Sachs and Stifel: US outages would probably last several months; others said higher gasoline prices might prompt operational refineries to delay typical September seasonal maintenance.

Overall, shrinking crude stocks and expectations for rising growth in global demand meant analysts in a monthly Reuters poll raised their oil price forecasts for the first time in six months.

FOREX: Week-on-week value of Peso appreciated against the US dollar by P0.02 to P51.17 from P51.18 in the preceding week.

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DOMESTIC OIL PRICES    

Effective 05 September 2017, most of the oil companies have increased their prices by P0.40 both for gasoline and diesel.  Price of kerosene also increased by P0.50/liter.

Year-to-date total adjustments stand at a net increase of P3.19/liter in gasoline and P2.10/liter in diesel.

As monitored, shown below are the retail prices in Metro Manila beginning 05 September 2017.

Products Price Range Common Price
P/liter
Diesel 28.75-33.46 33.15
Gasoline* 40.35-50.35 46.65
LPG, P/11-kg cylinders 470.00-720.00

* 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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