WORLD OIL PRICES (July 29 - August 2, 2019 trading days)
Dubai crude has slightly increased week-on-week by around US$0.05 per barrel. MOPS diesel has also increased by almost US$0.20 per barrel, while no movement was reflected on the price of MOPS gasoline.
Reasons for the Adjustment
The demand for crude is seen to increase during August as refinery downtime reaches a low point for the year to date. Crude runs during August will be at the high point of the year so far. The fall turnaround season is coming up and with it more downtime and lower runs compared to the August peak level. New refining capacity has been coming online with the pace increasing toward the end of the year, outdoing the growth in annual adjusted demand. Refining margins have improved and will further increase later this year in preparation of IMO 2020. (Source: PIRA, August 1, 2019)
President Donald Trump announced the US will impose a 10% tariff on $300 billion worth of Chinese goods September 1, when trade talks between the two countries resume. The tariff escalation, while scaled back from Trump's earlier threat of a 25% tariff, could spur a fresh round of retaliatory tariffs by China.
Trump's tariff announcement ratcheted up pressure on the relationship between the world's biggest trading partners, a day after US-China trade negotiations concluded without a deal.
Sentiment in the Asian gasoline market appeared firm Friday despite renewed trade tension between the US and China.
Fundamentals in the Asian gasoline market were steady towards the end of the trading week, keeping sentiment among market participants firm despite mixed supply-side data from the US and Middle East.
The Asian gasoil market remained steady Friday as market fundamentals remained largely unchanged. The Asian gasoil market remained firm amid strengthening fundamentals in the region. A trader said that Asia gasoil supply is still pretty tight.
FOREX: Week-on-week value of Philippine Peso appreciated against the US dollar by P0.08 to P51.07, from P51.16 in the previous week.
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DOMESTIC OIL PRICES
For this week, there were no movements implemented by the oil companies on fuels.
Year-to-date adjustments remains at a net increase of P5.00/liter for gasoline, P3.95/liter for diesel and P2.15/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
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