Oil Price Watch

[GTi]

Slightly OT but it's now January 2016. Are all fuels sold now Euro 4 standard?

[lakay77]

Last time oil was $40/barrel , RON95 gas is 34 pesos level. Now it's already down $36/barrel , gas barely get's P36. Something is fishy or they are in cahoots.

mag election kasi kaya gany dapat nga mababa na

[StockEngine]

Crude oil price and refined products' price are not directly proportional.

With the new technologies and new refineries it should be somewhat lower.

Iran has yet to pour in more oil and some countries meron din "gas" And the US meron din itatapon sa market.

Anyways the govt has to tax these extremely cheap fuels. Laking income ng govt for giant roads.

COPD will be a huge killer in the coming years.

[jut703]

Last time oil was $40/barrel , RON95 gas is 34 pesos level. Now it's already down $36/barrel , gas barely get's P36. Something is fishy or they are in cahoots.

Crude price isn't equal to refined product price. Price movement for diesel can be different from unleaded, as is the case next week (diesel rollback of 30 cents, unleaded increase of 45 cents).

But it's also true that oil companies are improving profit margins, but the impact of this is less than P1.00/L, so the huge gap is still really more market-driven.

Slightly OT but it's now January 2016. Are all fuels sold now Euro 4 standard?

Yes.


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[radz15]

Nationwide na ba yung euro4 sa lahat ng players? Yung iba kasi walang karatula na Euro 4 na sila.

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[jut703]

Nationwide na ba yung euro4 sa lahat ng players? Yung iba kasi walang karatula na Euro 4 na sila.

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Yes.


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[radz15]

Yes.


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Thanks sir jut

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[Juan Martinez]

Oil slides below $35 on rising stocks, fading hopes of export cuts

Thursday, January 07, 2016 12:31AM

LONDON - Oil prices fell below $35 per barrel for the first time since 2004 on Wednesday, tumbling more than 5 percent as the row between Saudi Arabia and Iran made any cooperation between major exporters on cutting output even more unlikely.

A sharp rise in gasoline stocks in the United States reinforced the picture of a market that is awash with oil and refined products.

The international furore over Saudi Arabia's execution of a Shi'ite cleric ended speculation that OPEC members might agree to production cuts to lift prices.

"There are rising stockpiles and the tension between Iran and Saudi Arabia makes any deal on production unlikely," said Michael Hewson, chief market analyst at CMC Markets.

Evidence of slowing economic growth in China and India has meanwhile fuelled fears that even strong demand elsewhere may not be enough to mop up the excess crude that has resulted from near-record production over the last year.

Benchmark Brent futures were traded at $34.48 a barrel at 1606 GMT, down $1.94 on the day, and at their lowest level since early July 2004. The price is on track for its largest one-day drop in percentage terms in nearly five weeks.

US crude futures were down $1.48 at $34.49 a barrel after slipping 79 cents the previous day.

Oil has slumped from above $115 in June 2014 as shale oil from the United States has flooded the market, while falling prices have prompted some producers to pump even harder to compensate for lower revenues and to keep market share.

Adding to this oversupply, Iranian oil exports are widely expected to increase in 2016 as Western sanctions against Tehran over its nuclear programme are lifted.

"Shale (oil) production and increasing capacity from countries like Russia who need to protect revenue combined with expectations of further Iranian supply mean actual production as well as expectations of future production are rising," Hewson said.

However, a senior Iranian oil official said the country could moderate oil export increases once sanctions are lifted to avoid putting prices under further pressure.

Also feeding into the overall weak market sentiment, a survey showed that China's services sector expanded at its slowest pace in 17 months in December, following on from weak factory data on Monday which also knocked markets globally.

The People's Bank of China set a weaker midpoint for the yuan, prompting concerns that the economy of the world's largest energy consumer could be in worse shape than believed.

Meanwhile, US gasoline stockpiles rose by 10.6 million barrels last week, the biggest build since 1993, according to Energy Information Administration data.

Investors shrugged off an unexpected fall in crude stocks, instead focusing on the massive oversupply of oil products, with distillates as well as gasoline inventories gaining.

"As big as the crude oil drawdown was, the build in gasoline was even more spectacular and crushing to the market. Gasoline was the sole source of strength within the complex, and that looks to have ended," said John Kilduff at Again Capital. — Reuters

[5000rpm]

Correct me if i'm wrong.. I have read somewhere that Shell will only be selling euro 4 fuels around mid of this year?

And aside from the additives, what else contributes to the price of gasoline? Or what other factors affect its price? as per the article posted by sir Juan, will the projected increase in price of gasoline continue next week?

[Monseratto]

LONDON - Oil prices fell below $35 per barrel for the first time since 2004 on Wednesday, tumbling more than 5 percent...

Major rollback next week...?

[Juan Martinez]

Correct me if i'm wrong.. I have read somewhere that Shell will only be selling euro 4 fuels around mid of this year?

And aside from the additives, what else contributes to the price of gasoline? Or what other factors affect its price? as per the article posted by sir Juan, will the projected increase in price of gasoline continue next week?

Major rollback next week...?

bro jut, we need your view on this. thank you.

[StockEngine]

New low... below 34$

33.xx

Roll back im guessing

[Monseratto]

Brent has touched USD 32.75 today...

[Ry_Tower]

For sure rollbsck yan next week

[StockEngine]

WTI dropped to 32.55

More than 1peso diesel roll back? Lol

[Dende]

May tanong lang po, bakit mas mahal ng P1-2 ang price ng gas sa QC compared to other areas sa south? Nagpagas ako sa T.morato kanina at XCS ay 39.80. Nung napadaan ako sa San Juan eh 38.90 lang siya?

Dahil ba mas malapit ang oil depot sa south?


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[jut703]

Correct me if i'm wrong.. I have read somewhere that Shell will only be selling euro 4 fuels around mid of this year?

And aside from the additives, what else contributes to the price of gasoline? Or what other factors affect its price? as per the article posted by sir Juan, will the projected increase in price of gasoline continue next week?

Shell is Euro IV already as we speak. You might be referring the news on their IPO, which is expected within the year.

Crude oil is just raw material and its price is not automatically correlated to the price of refined diesel and gasoline. Other factors that affect the price of refined products include refining costs, the actual mix of crude (crude oil from Saudi isn't the same as crude from Brunei), and of course, supply and demand.

Major rollback next week...?

Nope. Rollback for diesel and increase for gasoline. I haven't checked the exact amount as of today, but it was less than 1 peso both ways.

May tanong lang po, bakit mas mahal ng P1-2 ang price ng gas sa QC compared to other areas sa south? Nagpagas ako sa T.morato kanina at XCS ay 39.80. Nung napadaan ako sa San Juan eh 38.90 lang siya?

Dahil ba mas malapit ang oil depot sa south?


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Nope. Just stiffer competition in the south. If a major player decides to drop prices in the north, others will follow suit and a price war will begin.

Freight costs are very minimal and the difference between freight from, say, Alabang vs QC is just a few cents.

Over and over again, people post their complicated theories here on why prices in one area are lower than in another. The simple answer is that one guy decided he wants to lower prices to get more customers, but then eventually all other competitors followed suit and hence the entire area ends up with lower prices than other trade areas.




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[viper888]

Another factor is the cost of the lease of the area. Id expect the lease in tomas to be very expensive. Thats why gas is a little bit cheaper in the provinces and shell forbes or petron dasma is obviously expensive.


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[jut703]

Another factor is the cost of the lease of the area. Id expect the lease in tomas to be very expensive. Thats why gas is a little bit cheaper in the provinces and shell forbes or petron dasma is obviously expensive.


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Lease is a consideration, but again the difference is only a few cents per liter.

Prices in BGC are obviously more expensive than, say, SM Fairview simply because people in BGC have a higher willingness to pay.

If lease was such a major factor, then how can you explain how the prices along Shaw Blvd, which were among the lowest in the entire MM about 3 years ago by about 2 pesos, are now on average 1.50 higher than the price of stations along EDSA/C5?

Conversely, prices of E. Rod have dropped from being at par with most of the metro, to their current level which is roughly 2 pesos lower.

Again, pricing is really just arbitrary. The goal of any oil company or generic station is to profit, and if they can increase unit margins, they will. Likewise, they can drop prices until they sell at cost, but that's still a long way to go, especially for gasoline.


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[crazy_boy]

Lease is a consideration, but again the difference is only a few cents per liter.

Prices in BGC are obviously more expensive than, say, SM Fairview simply because people in BGC have a higher willingness to pay.

If lease was such a major factor, then how can you explain how the prices along Shaw Blvd, which were among the lowest in the entire MM about 3 years ago by about 2 pesos, are now on average 1.50 higher than the price of stations along EDSA/C5?

Conversely, prices of E. Rod have dropped from being at par with most of the metro, to their current level which is roughly 2 pesos lower.

Again, pricing is really just arbitrary. The goal of any oil company or generic station is to profit, and if they can increase unit margins, they will. Likewise, they can drop prices until they sell at cost, but that's still a long way to go, especially for gasoline.


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wow. i didnt know prices in e.rod is 2 pesos below par. gilmore/san juan area has cheaper fuel also.