Oil Monitor as of May 09, 2018

Originally posted at the DOE Website

WORLD OIL PRICES  (April 30-May 4, 2018 training days)

Dubai crude decreased week-on-week by about US$0.30 per barrel. MOPS gasoline and diesel decreased as well about by about US$0.40 and US$0.20 per barrel, respectively.

Reasons for the Adjustment

  • Fundamentals in the Asian gasoline market was balanced to slightly bearish, as buying interest remained steady while supply was expected to be high. Some supply are emerging from Taiwan and India..

  • Asian gasoil market have steady demand amid tight supply that kept the market supported. While the annual fishing ban in China has started, demand in India and Middle East was firm, the ban on fishing in the East China Sea and South China Sea from May to August is expected to cap demand. In the Middle East, gasoil demand is rising ahead of Ramadan, market traders said.

  • Factors affecting crude oil prices:

    • Analysts say oil prices remain relatively high supported by healthy demand and production cuts by the OPEC.

    • Oil prices however slightly fell this week, pulled down by a rise in U.S. crude inventories and record weekly U.S. production, which is countering efforts by producer cartel OPEC to cut supplies and prop up prices.

      • U.S. oil production hit a fresh record of 10.62 million bbl/day, higher than top exporter and OPEC-kingpin Saudi Arabia of 9.96 but lower than Russia that currently pumps oil at around 11 million bbl/day.

    • Expectation that the United States will re-impose sanctions against Iran remain a threat that could tighten global oil supplies. (The U.S. has until May 12 to decide whether it will leave a nuclear deal with Iran and impose new sanctions against Tehran).

      • Iran has revived its output to 3.82 million b/d in March, according to the latest S&P Global Platts OPEC survey, thus, any US action is expected to hit Iranian supplies.

    • U.S. sanctions on Russian companies and individuals and by fears Washington may take new measures against struggling Venezuela and especially OPEC member Iran.

    • Iran, faced with a possible restoration of U.S. sanctions, came out against higher oil prices, signaling a split with fellow OPEC member Saudi Arabia, which is showing a willingness to keep tightening crude markets.

      • According to Iran a “suitable price” for crude is $60 to $65 a barrel, contrary to Saudi Arabia that reportedly wants $80 a barrel to support the valuation of state energy giant Aramco before an initial public offering.

FOREX:  The value of Philippine peso per US dollar depreciated by P0.41 to P51.78, from P52.19 in previous week.

Other recommended reference sites:

DOMESTIC OIL PRICES    

Effective 08 May 2018, oil companies implemented a decrease of P0.30/liter for gasoline and diesel and P0.60/liter for kerosene.

Year-to-date adjustments are at net increase of P4.00/liter for gasoline and P4.95/liter for diesel and P4.90/liter for kerosene.

As monitored, shown below are the retail prices in Metro Manila beginning May 8, 2018.

Products Price Range Common Price
P/liter
Diesel 39.05-45.13 44.35
Gasoline* 48.15-58.15 55.37
Kerosene 46.52-55.06 49.45
* 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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