WORLD OIL PRICES (February 10-14, 2020 trading days)
Dubai crude has decreased week-on-week by almost US$0.40 per barrel. On the contrary, both MOPS gasoline and MOPS diesel have increased, gasoline by around US$1.15 per barrel and diesel by a little of US$0.01 per barrel.
Reasons for the Adjustment
Oil prices sharply lower on coronavirus impact concerns, but talks of OPEC+ cuts provided some support.
China’s imports of U.S. crudes likely to stay modest in the near term before picking up strongly in 2H20.
Platts Analytics expects U.S. crude exports to increase by 650 MB/D year-on-year in 2020, with the bulk going to Asia.
China’s imports of U.S. crudes to stay modest in the near term due to the coronavirus before picking up strongly in 2H20 after the outbreak.
Global oil demand to take a hit as China’s growth gets slashed by the coronavirus outbreak.
Global oil demand in 2020 is expected to grow by 1 MMB/D under the best-case scenario and 320 MB/D under the worst-case scenario.
Asian oil demand is expected to grow by 560 MB/D in 2020 under the best-case scenario but with no growth under the worst-case scenario.
The Asian gasoline market showed signs of easing at the end of the trading week, as the bout of optimism began to fade following further supply cuts in China.
Asian gasoil market ended the week on a softer note, with some traders saying that prompt cargoes were being seen in the spot market and which was placing downward pressure on the middle distillate.
The coronavirus outbreak in China has hit gasoil demand, with refineries having to cut back production in an effort to offset stock pressure.
Weaker demand has also been seen in other Asian regions.
The volatility over the last week has been a reflection of that, market sources said, with some saying that the market was searching for direction in the aftermath of the coronavirus outbreak which has impacted China's domestic consumption.
FOREX: Week-on-week value of Philippine Peso appreciated against the US dollar by P0.21 to P50.61 from P50.82 in the previous week.
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DOMESTIC OIL PRICES
Effective February 18-19,2020, most of the oil companies implemented a price increase/decrease on petroleum products. The price of gasoline has increased by P0.35/liter while a P0.10/liter decreased, have been effected on the price of diesel and kerosene.
Year-to-date adjustments stand at a net decrease of P2.80/liter for gasoline, P4.60/liter for diesel and P5.94/liter for kerosene.
For the updated prevailing retail pump price, please browse this link: https://www.doe.gov.ph/price-monitoring-charts?q=retail-pump-prices-metro-manila
For more information, call the
Department of Energy
SMS: (0915) 4469421