Oil Monitor as of August 01, 2018

Originally posted at DOE website

Dubai crude has increased week-on-week by around US$1.50 per barrel.  MOPS gasoline and diesel increased as well by almost US$2.90 and US$2.50 per barrel, respectively.

Reasons for the Adjustment

Factors affecting crude oil prices:

  • Geopolitical risks and US stock draws

    • Iran and the US growing tension

      • Initial rally this week was driven by Iranian threats to block the key oil transit chokepoint at the Straight of Hormuz.

      • President Hassan Rouhani’s suggested to block the region’s oil exports if the country is unable to sell its crude because of US sanctions.

    • Saudi  Arabia’s  suspension  of  all  its  oil  shipments  through  the  Bab  el-Mandeb strait at the southern tip of the Red Sea, following an attack on two Very Large Crude Carriers (VLCCs) by Yemeni Houthi militia.

    • A  6.1  million  barrel  draw  in  US  crude inventories  for  the  week  ending  July 20 reported by the EIA Wednesday was also supportive of the week’s price trend.

Asian gasoil (diesel) market

  • Gasoil from India have not been impacting the market as much, as exports have been  slightly  lower  than  expected.    Meanwhile  China’s  gasoil  exports  fell  to  a four-month low of 1.61 million mt in recent month.

Asian gasoline market

  • Major source of gasoline comes from China but its gasoline exports however fell to  a  four-month  low  in  June,  in  tandem  with  the weakness  seen  in  the  Asian market.

FOREX:  Week-on-week value of Philippine Peso appreciated against the US dollar by P0.09 to P53.41, from P53.50 in previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES    

Effective 31 July 2018, most of the oil  companies have implemented an increase of P1.15/liter for gasoline, P0.95/liter for diesel and P0.85/liter for kerosene.

Year-to-date total adjustments stand at a  net increase of P6.45/liter for gasoline  and P6.40/liter for diesel.

As monitored, shown below are the retail prices in Metro Manila beginning July 31, 2018.

Products Price Range Common Price
P/liter
Gasoline (Ron91) 48.60 – 58.72 54.35
Gasoline (Ron95) 49.10 – 60.33 56.35
Gasoline (Ron97) 51.70 – 62.40 58.35
Diesel 41.45 – 46.09 44.65
Diesel PLUS 43.95 – 53.97 47.55
Kerosene 46.72 – 56.46 50.85
LPG, P/11-kg cylinders 599.00-819.00
* 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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