WORLD OIL PRICES (July 10-14, 2017 trading days)
Crude prices were sharply lower this week by an average of about six percent, as a rise in U.S.crude production and a climb in oil rigs reactivated concerns that OPEC-led efforts to bring balance the market are ruined.
Baker Hughes disclosed its latest data stating that the number of active U.S. oil rigs climbed by 7 to 763 rigs. The data contradicted some expectations that the rig count would continue to fall, following the previous week’s retreat, which marked the first decline since January.
Furthermore, the U.S. Energy Department Administration’s report of a weekly rise in the country’s crude production pulled crude benchmark-WTI toward their lowest finish in nearly two weeks.
The crude production gains from Libya and Nigeria, the two OPEC members exempt from the deal in order to steer oil revenue, likewise weighed on the week’s price decline. OPEC economists in their monthly market report for July said that, combined, Nigeria and Libya were adding about a quarter million barrels of oil per day to the market, while other member states scale back.
Gasoline market in Asia Pacific was referred to as weak as supply is expected to outstrip demand in the near term. Even as prices continued to fall, Platts noted that the market has not yet bottomed out and there is still some way down. Gasoline cargoes were heard coming to Asia from the EU but data from International Enterprise Singapore showed that as of July 12, no cargoes have arrived directly from Europe to Singapore. Cargoes are perceived to be bypassing Singapore.
As for gasoil, the market remained supported by increased buying interest and the likelihood of arbitrage arrivals. Middle East and India remained the countries to have high demand for gasoil. Shortage of the middle distillate, fuelled by several refinery shutdowns for maintenance and upgrade works, has pulled surplus barrels into region. On the supply front, market participants reiterated that supply was tight, especially for prompt/spot barrels.
Overall, Dubai crude decreased week-on-week by about US$1.40/bbl. MOPS gasoline and diesel decreased as well by US$0.65 and US$1.90 per barrel, respectively.
FOREX: The Philippine peso depreciated further against the US dollar by P0.06 to P50.62, from P50.56 in previous week.
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DOMESTIC OIL PRICES
Effective 18 July 2017, the oil companiesimplemented price rollbacks of P0.20/liter for gasoline and P0.60/liter for diesel. Kerosene also decreased by P0..50/liter.
Year-to-date, both gasoline diesel have net decrease of P0.45 and P0.25 per liter, respectively. LPG has net decrease of P2.41/kg.
|As monitored, shown below are the retail prices in Metro Manila beginning June 20, 2017.|
|LPG, P/11-kg cylinders||415.00-660.00|
* RON 95
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