The Institute for Energy Security (IES) is projecting a slight reduction in prices of fuel on the market.
A statement signed by the Institute’s Research Analyst, Mikdad Mohammed said:
“The Institute for Energy Security (IES) foresees a slight reduction in fuel prices at the pump as a fall out of the reductions in the prices of finished products and crude oil on the international market, coupled with the relative stability of the Ghana cedi against the U.S.Dollar.”
He however added that the fundamentals have since changed since the window kicked in as prices have suddenly gone up, which could affect any reduction expected.
Accoridng to IES, an observation of the window before the market fundamentals changed showed “Brent Crude trading at an average of $75.16 within the period under review. The 1.4% drop was largely influenced by the much awaited OPEC meeting in Vienna which many analyst and traders suspected was going to end in a dead-lock with respect to projection output. Rather the meeting ended with an agreement to rump up production by some one million barrel per day. At press time (28th June 1530hrs) Brent crude was trading at $77.65 as influenced by drop in inventory and by President Donald Trump’s sustained bid to disrupt Iran’s crude oil exports.”
The statement added that:
“In Standard and Poor’s Global Platts analysis, Gasoline prices went down further by 3.02% to close trading at $699.61 per metric tonne, from a previous average of 715.25$ per metric tonne. While Gasoil which sold at a previous price of $674.00 also reduced by 3.09% to close trading at $652.52 per metric tonne within the window”
See full statement below:
REVIEW OF SECOND PRICING WINDOW FOR JUNE 2018
Local Fuel Market Performance
Fuel prices failed to drop by 2% as speculated by some media houses within the past Pricing-window. Instead, prices stayed unchanged as projected by IES based on local and international market fundamentals. Diesel and Petrol continue to be sold on average terms at GHc4.83 and GHc 4.85 respectively after increasing by approximately 4% within the first window of June 2018. IES Market-Scan still shows Zen Petroleum selling the lowest-priced Gasoline and Gasoil on the fuel market, followed by Benab Oil, Pacific, Lucky Oil, and Frimps Oil.
World Oil Market Prices
An observation of the international oil market reveals Brent Crude trading at an average of $75.16 within the period under review. The 1.4% drop was largely influenced by the much awaited OPEC meeting in Vienna which many analyst and traders suspected was going to end in a dead-lock with respect to projection output. Rather the meeting ended with an agreement to rump up production by some one million barrel per day. At press time (28th June 1530hrs) Brent crude was trading at $77.65 as influenced by drop in inventory and by President Donald Trump’s sustained bid to disrupt Iran’s crude oil exports. In Standard and Poor’s Global Platts analysis, Gasoline prices went down further by 3.02% to close trading at $699.61 per metric tonne, from a previous average of 715.25$ per metric tonne. While Gasoil which sold at a previous price of $674.00 also reduced by 3.09% to close trading at $652.52 per metric tonne within the Pricing window under review.
Local Forex and Fuel Stock
The Forex performance of the local currency against the U.S. Dollar for the window was fairly stable compared to the first Pricing-window’s depreciation of 1.7 percent. Data gathered by IES Economic desk shows the cedi trading at GH¢4.68, a slight reduction from the GH¢4.70 that heralded the last window.
Adding to the country’s fuel stock was approximately 13,500 metric tonne – LPG, 47,000 metric tonne – Gasoline, and 24,000 metric tonne – Gasoil over the last 15days.
PROJECTIONS FOR JULY 2018 FIRST PRICING-WINDOW
The Institute for Energy Security (IES) foresees a slight reduction in fuel prices at the pump as a fall out of the reductions in the prices of finished products and crude oil on the international market, coupled with the relative stability of the Ghana cedi against the U.S.Dollar.
Signed: MIKDAD MOHAMMED
