WORLD OIL PRICES (August 29-September 2, 2016 trading days))

Crude prices had a sharp slide by about US$3 to US$4 a barrel last week as supply concerns weighed on the market. While Brent and WTI crude bounced back on Friday, gaining nearly two percent, the week’s overall contract was still down by around three to four percent.

Crude oil’s minor break of first support early this week was followed by more significant sell-off midweek, as oil reacted to data indicating U.S. stockpiles increased more than expected. The USDOE-EIA report revealed that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.3 million barrels from the previous week. The contract followed through on the downside until finding support on Friday, from Vladimir Putin’s push for the output deal during the producers meeting in September. Bloomberg reported that Putin expressed his desire for OPEC and Russia to freeze supplies.

For refined products, Asian gasoline market was largely seen to be stable amid relatively balanced fundamentals. Platts noted that with Indonesia’s prompt demand for 92 RON gasoline met, market participants were looking for new clues supporting gasoline. Some ongoing and upcoming refinery in Northeast Asia is expected to lend support on prices.

As for the sentiment in the Asian gasoil/diesel market, it was said to remain under pressure from oversupply concerns. Platts reported of fairly demand in Asia, but the arbitrage window to move gasoil cargoes from East of Suez to the UK-Continent and from Far East Asia to the US were firmly shut. These kept the products trapped in the region.

Overall, Dubai crude decreased week-on-week by about US$1.60/bbl. MOPS gasoline barely moved from average last week, while diesel decreased by nearly US$1.80/bbl.

FOREX: Philippine peso depreciated against the US dollar by P0.13 to P46.51/US$, from P46.38 last week.

Other recommended reference site: https://www.aip.com.au/pricing

DOMESTIC OIL PRICES

Effective today, 06 September 2016, most of the oil companies implemented a decrease of P0.50/liter in diesel and P0.35/liter in kerosene.

This resulted to a corresponding decline in the year-to-date adjustments of diesel, now at net increase of P4.43/liter. Gasoline remains at net increase of P2.49/liter and LPG at net decrease of P7.33/kg.

* RON 95

For more information, call the

Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: [email protected]
Website: https://www.doe.gov.ph