WORLD OIL PRICES (December 31, 2018 – January 04, 2019 trading days)
Dubai crude has increased week-on-week by around US$1.70 per barrel. MOPS gasoline and diesel have also increased by almost US$2.50 per barrel and nearly US$2.00 barrel respectively.
Reasons for the Adjustment (Rollbacks)
- Oil prices rose more than 1 percent in volatile trade, drawing support from signs that Saudi Arabia is cutting crude output but pressured by concerns that slowing global economic growth could dent demand.
- A late rally Thursday pushed oil futures to higher settles for a second consecutive session as a focus on supply and demand overshadowed continued equity market weakness.
- Concerns that slowing economic growth, specifically in China, could blunt future oil demand have stalked crude markets in recent months. But oil prices recovered as the market’s focus shifted from sharply lower equity markets to supply and demand fundamentals. Tradition Energy analyst Gene McGillian said that even with slowing demand growth concerns in Europe and China, there is still strong demand there – just the growth is slowing.
- Platts noted of improved gasoline market in Asia as the week ended on concerns over of declined supply glut. Moreover, demand is expected to increase due to early Lunar New Year in February. These give relief to the overall supply glut fundamentals that have improved since December as China is set to export less in January.
FOREX: Week-on-week value of Philippine Peso appreciated against the US dollar by P0.06 to P52.59, from P52.64 in the previous week.
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DOMESTIC OIL PRICES
Effective 08 January 2019, most of the oil companies implemented a price increase of P0.80/liter for gasoline, P0.70/liter for diesel and P0.40/liter for kerosene.
Year-to-date adjustments stand at a net decrease of P0.50/liter for gasoline, P1.90/liter for kerosene and P1.85/liter for diesel.
As monitored, shown below are the retail prices in Metro Manila beginning January 08, 2019.
|LPG, P/11-kg cylinders
For more information, call the
Department of Energy
SMS: (0915) 4469421