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.
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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|
|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|
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