Source: DOE Website
WORLD OIL PRICES (May 22-26, 2017 trading days)
Crude prices increased further for the second consecutive week on reports of strong inventory draw in the US and as the market expected OPEC-led supply cuts that overshadowed the White House proposal to sell half of U.S. petroleum reserves, threatening a future glut.
However, the decision of OPEC on Thursday, 25 May 2017, to roll over its supply cut agreement by nine months, instead of making deeper or longer supply cuts brought crude prices lower by more than US$2 a barrel. However, traders spotted buying opportunities following the Thursday’s plunge, which capped the decrease as oil complex somehow rebounded in the next trading day.
In Asia, the week ended with a moderate gasoline market as the oil complex failed to find support in OPEC news out of Vienna, where OPEC members and their non-OPEC counterparts announced they would extend their current supply cut agreement. Platts added that fundamentals remained balanced in the region, with supply sufficient and demand supported in the lead up to Ramadan. More supply is also expected from Europe in the absence of an outlet to the US.
On the other hand, firm buying demand from India for Ultra Low Sulfur Diesel in the Persian Gulf pushed prices higher. India’s spot demand for 40 ppm sulfur gasoil has been the main reason for the rise in ULSD cash differentials in the Persian Gulf and Singapore. In April, India moved its diesel specification to Bharat Stage IV vehicle emission and fuel standards, capping sulfur limits for all diesel vehicles in the country at 50 ppm. Reports further disclosed that spot demand is due to the upgrading of refinery nits for 50 ppm production, hence capacities are down and India needs to import to cover the shortfall.
Overall, Dubai crude increased week-on-week by more than a dollar. MOPS gasoline and diesel likewise increased by about US$1.00 and US$2.00 per barrel, respectively.
FOREX: The Philippine peso depreciated against the US dollar by P0.08 to P49.84/$, from
P49.77 in previous week.
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DOMESTIC OIL PRICES
On 30 May 2017, the oil companies effected a per liter increase of P0.55 in gasoline, P0.75 in diesel and P0.85 in kerosene.Year-to-date, corresponding total adjustments in gasoline and diesel are now at net increase of P1.41 and P0.60 per liter.. LPG remains at net decrease of P0.76/kg.
|As monitored, shown below are the retail prices in Metro Manila beginning 30 May 2017.|