WORLD OIL PRICES (January 15-19, 2018 trading days)
Dubai crude increased week-on-week by US$0.60 per barrel. MOPS gasoline and diesel also increased by nearly US$0.60 and US$0.90 a barrel, respectively.
Reasons for the Adjustment
OPEC and its allies expressed in their recent meeting to prolong their partnership even after their production cuts have rebalanced the oil market.
In the meeting held in Muscat, ministers from Saudi Arabia, Russia, Kuwait, Venezuela, Algeria and Oman, discussed compliance with the deal and assess market conditions.
Russian Energy Minister Alexander Novak stated that no exact framework has been established, though Saudi Arabia and other OPEC members are willing to adjust to changes in market conditions.
With oil prices having risen 10% since OPEC’s last meeting November 30 in Vienna, many market watchers will be eager to see if the monitoring committee gives any signal on whether the pact will be ended early or perhaps adjusted.
Iranian oil minister Bijan Zanganeh, who does not sit on the committee, fueled some of the speculation when he said last week that OPEC was not eager for prices to rise too far above $60/b for fear of reigniting US shale supplies. Meanwhile, CEO Vagit Alekperov of Lukoil, a Russian multinational energy corporation, noted that cuts should be phased out if oil is $70/bbl.
Oil prices this month have not been so high in three years. At the end of 2017 and early 2018, the sentiment turned decisively bullish amid geopolitical concerns—mostly from the Middle East, signs of a tighter oil market, and healthy global economic growth that boosts oil demand growth.
FOREX: Philippine peso depreciated against the US dollar by P0.32 to P50.58, from P50.26 in previous week.
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DOMESTIC OIL PRICES
Starting 23 January 2018, most of the oil companies implemented a P0.35/liter increase in gasoline and P0.50/liter for diesel and kerosene.
Consecutive increases this year brings the total year-to-date adjustments to P1.35 for gasoline, P2.30 for diesel and P2.15 for kerosene.
As monitored, shown below are the retail prices in Metro Manila beginning January 23, 2018.
|Products||Price Range||Common Price|
|LPG, P/11-kg cylinders||548.00-773.00|
|* RON 95|
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