Originally posted at DOE website
WORLD OIL PRICES (March 12-16, 2018 trading days)
Dubai crude increased week-on-week by US$0.25 per barrel. MOPS diesel increased as well by nearly US$0.75 contrary to gasoline that decreased by US$0.25 per barrel.
Reasons for the Adjustment
Asian gasoline market was relatively stable on ample supply coming out of China and South Korea. Limited buying interest from regional demand centers in contrast to the current ample supply from Northeast Asia demonstrated a fairly quiet market. Supply continued to outstrip demand.
For gasoil/diesel, medium sulfur grade was supported by limited supply in view of ongoing refinery maintenance in Asia and steady demand. Meanwhile, demand for ultra-low sulfur diesel was relatively weak, with more cargoes coming from the Persian Gulf.
Potential OPEC trouble is possible as Iran reopens the debate over when to signal an end to the OPEC current production cut deal along with Russia Arguments floated to end it soon if crude bursts through the $70/b level
Iranian Oil Minister Bijan Zanganeh insists Saudi is onboard with the idea, but his message contradicts recent signals of longer term cooperation between OPEC and producers outside the group led by Russia.
OPEC next meeting is on June 22 in Vienna, but the monitoring committee chaired by Saudi energy minister Khalid al-Falih is said to meet in Saudi Arabia in April to review compliance with the cuts and assess market conditions. Saudi Arabia is determined to maintain its production cuts through the end of the year.
US oil shale output has surged from 6.52 MMBD to 7.9 MMBD in December 2017 – or almost 1.4 MMBD, the US-EIA has estimated.
FOREX: The value of Philippine peso per US dollar depreciated by P0.03 to P52.04, from P52.00 in previous week.
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DOMESTIC OIL PRICES
Effective 20 March 2018, most of the oil companies decreased the price of diesel by P0.40/liter while kerosene was decreased by P0.55/liter. There was no movement in the price of gasoline.
Year-to-date adjustment in diesel stands now net increase of P1.55/liter and kerosene at P1.35/liter. Gasoline remains at net increase of P1.05/liter.
As monitored, shown below are the retail prices in Metro Manila beginning March 20, 2018.
|* RON 95
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Department of Energy
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