WORLD OIL PRICES (November 13-17, 2023, trading days)
The week-on-week price of Dubai crude has decreased by around $1.60/bbl. Similarly, MOPS gasoline, diesel and kerosene prices have also decreased by nearly $2.20, $1.80, and $1.40 per barrel, respectively.
Reasons for the Price Adjustment1
- Crude prices settled lower following larger than expected US inventory build. However, the market was seen supported through the week on upward revision of demand growth forecasts by IEA and OPEC while economic data from China also showed resilience.
- US commercial crude stocks climbed 3.59 million barrels to 439.35 million barrels in the week to Nov. 10, US Energy Information Administration data showed Nov. 15.
- The build left inventories 2.3% behind the five-year average, marking the narrowest deficit since mid-August. While seasonal, Platts say it still exceeded market expectations after American Petroleum Institute data pointed to a build of 1.3 million barrels in the week to Nov. 10.
- The Asian gasoline complex strengthened tracking a widening US-RBOB Brent crack amid a drop in US stocks.
- The US RBOB-Brent crack widened as total US gasoline stocks fell 1.54 million barrels on the week to 215.670 million barrels in the week ended Nov. 10, the US Energy Information Administration data released Nov. 15 showed.
- Some market participants said Indonesia's gasoline demand could be supported ahead of the presidential election in February while others expect imports to decline as refineries will be back from maintenance.
- For gasoil, poor demand in Asia and unviable arbitrage economics dampening the market sentiment.
- Poor demand kept the Asian ultra-low sulfur gasoil market on a downward pressure with some market participants saying the middle distillate could remain depressed for an extended period.
FOREX: The week-on-week average of Philippine peso appreciated versus the US dollar by P0.08 to P55.89 from P55.97 in previous week.
DOMESTIC OIL PRICES
Effective 21 November 2023, the oil companies implemented price rollbacks for gasoline, diesel, and kerosene by P0.75, P0.65 and P0.60 per liter, respectively.
These said price adjustments resulted in a year-to-date net increase of P12.30/liter for gasoline, P5.70/liter for diesel and P1.09/liter for kerosene.
For the updated prevailing retail pump prices, please refer to this link:
Other recommended reference sites:
For more information, call the
1 Asia-Pacific Weekly Recap 17 November 2023 by S&P Global Commodity Insights.